Petitioner filed return of income. Petitioner’s case was selected for complete scrutiny under the CASS and accordingly notice under Section 143(2) of the Act was issued. The assessment order was passed. On writ the petitioner contended that the assessment order, was not preceded by any draft assessment order as its required under Section 144B of the Act. There is also non compliance with the mandatory provisions of Section 144B of the Act, where sub Section 1(xvi)(b) provides for an opportunity to the assessee to be heard. Allowing the petition the court held that Sub Section 9 of Section 144B provides that any order not in accordance with the proceedings laid down in Section 144B will be non-est. Therefore, the assessment order is non-est. Accordingly the demand notice issued under Section 156 of the Act and show cause notices under section 274 r/w Section 271AAC and Section 271B, were quashed and set aside as non-est. (WP No. 1623 of 2021 dt. 13-10-20021. (AY. 2018-19)
ND’s Art World Pvt. Ltd. v. NFAC (Bom.)(HC)(UR)
S. 144B : Faceless Assessment-Natural justice-Assessment order passed without draft assessment order-No personal hearing given-Order was quashed and set aside. [S. 133(6), 143(2), 156, 271AAC, 271B, 274, Art. 226]