Allowing the petition the Court held that since there was a variation in the declared income, the respondent was required to issue a show cause notice-cum-draft assessment order, in consonance with the provisions of Section 144B and the Faceless Assessment Scheme, 2019. Accordingly the assessment order, and the consequential notices issued, i.e., notice of demand issued under Section 156, and notice for initiation of penalty proceedings issued under Section 274 read with Section 270A, are set aside.
Lokesh Constructions (P) Ltd v. ACIT (2021) 202 DTR 149 (Delhi)(HC)
S. 144B : Faceless Assessment –Natural justice – Failure to issue show cause notice and draft assessment order as per faceless assessment scheme 2019 – Assessment order and consequential notices are set side . [ S. 156, 274 , Art , 226 ] S. 144B : Faceless Assessment –Natural justice – Failure to issue show cause notice and draft assessment order as per faceless assessment scheme 2019 – Assessment order and consequential notices are set side . [ S. 156, 274 , Art , 226 ]