On a writ petition against finalisation of assessments for the AYs 2016-17 and 2017-18, allowing the petition, the Court held that the orders of assessment for the AYs 2016-17 and 2017-18 should be treated as show-cause notices and the assessee was to file replies and after hearing the assessee, either virtually or physically, orders of assessment should be passed. Though two preassessment notices had been issued leading to some exchange of communications between the parties no show-cause notice crystallizing the issues dealt with in the assessment orders had been put to the assessee for rebuttal prior to completion of proceedings. Instruction No. 20 of 2015 dated December 29, 2015 ([2016] 380 ITR (St.) 36), Instruction No. 3 of 2018 dated August 20, 2018, relating to the AY 2016-17 and the “e-proceeding” facility available during the assessment 2018-19 and Circular No. 27 of 2019 dated September 26, 2019 ([2019] 417 ITR (St.) 68. (AY. 2016-17, 2017-18)
eShakti.Com Pvt. Ltd. v. ACIT (2022) 444 ITR 257 / 213 DTR 327/ 327 CTR 48(Mad.)(HC)
S. 143(3) : Assessment-Principle of natural justice-Scrutiny Assessment-Issuance of show-cause notice prior to finalisation of order of assessment is mandatory-Orders were treated as show cause notice-Directed to file replies within a period of six weeks. [S. 142(1), 143(2), 143(3), Art. 226]