Court remands assessment order due to lack of document service violating tax law, directs reissue.

The Court set aside the impugned assessment order and notice of demand, remanding the matter back to the Assessing Officer due to the lack of service of required documents on the petitioner, violating the mandatory procedure under Section 144B of the Income Tax Act, 1961. The Assessing Officer was directed to reissue the draft assessment order and show cause notice, allowing the petitioner to respond within seven days. The Court also noted the petitioner's concession on the limitation period for passing the Assessment Order under Section 153(6)(i) and disposed of the writ petition and pending applications accordingly.

---

---

Issues:
Challenge to Impugned Assessment Order and Notice of Demand under Income Tax Act, 1961 for Assessment Year 2018-19.

Analysis:
The petitioner challenged the Impugned Assessment Order under Section 143(3) and the notice of demand issued under Section 156 of the Income Tax Act, 1961 for the Assessment Year 2018-19. The petitioner contended that the assessment order was passed without issuing a show cause notice and draft assessment order as mandated under Section 144B(1)(xvi)(b) of the Act, violating principles of natural justice. The respondent claimed that the show cause notice and draft assessment order were uploaded, but admitted the lack of proof of service to the petitioner.

The Court observed that Section 144B(1)(xvi)(b) mandates the issuance of a show cause notice and draft assessment order before the final assessment order. As per Section 144B(9) of the Act, assessments made after April 1, 2021, must adhere to the procedure under this section. Since the petitioner was not served with the required documents, there was a clear violation of the mandatory procedure stipulated in Section 144B of the Act.

Consequently, the Court set aside the impugned assessment order, notice of demand, and notice of penalty, remanding the matter back to the Assessing Officer. The Assessing Officer was directed to issue another copy of the draft assessment order and a show cause notice within two working days. The petitioner was given seven working days to respond, after which the Assessing Officer must pass a reasoned order in accordance with the law. The petitioner's concession regarding the limitation period for passing the Assessment Order under Section 153(6)(i) was recorded, and the writ petition along with pending applications was disposed of.

The order was to be uploaded on the website immediately, and a copy was to be forwarded to the learned counsel through e-mail.

---