Allowing the SLP of the Revenue the Court held, that considering that the assessment order was passed without issuing a show-cause notice with a draft assessment order as was mandatorily required under section 144B of the Act, it could not be said that the High Court had committed any error. However, at the same time, considering the fact that the faceless assessment scheme had been introduced recently, the Department ought to have been allowed to take corrective measures. The judgment of the High Court was modified and the matter remanded to the Assessing Officer to pass a fresh assessment order, after following due procedure in accordance with law under section 144B of the Act. (AY. 2018-19)
Dy. CIT v. Abacus Real Estate Pvt. Ltd. (2023) 453 ITR 224 (SC) Editorial: Abacus Real Estate Pvt. Ltd. v. Dy. CIT (2022) 284 Taxman 654 (Bom.)(HC), decision of the Bombay High Court is modified and matter remanded.
S. 144B : Faceless Assessment –Failure to issue show cause notice and draft assessment order —Order of High Court is not erroneous -Judgment modified and matter remanded to Assessing Officer to pass fresh assessment order. [144B(1) (xvib), Art. 132, 226]