Haldia Steels Pvt Limited Vs Union of India & Ors
Forum- Calcutta High Court
Date-17th January 2022

Sub-Whether the revenue is bound to produce record of service of show cause notices and draft assessment order and whether the court can take adverse view in case of non production of record of service.

In an interesting case the single bench of Calcutta high court in this case was dealing with a case where order u/s 147 read with 144B was passed and *Mr Abhratosh Mazumdar and Mr Avra Mazumdar **appearing for the party contended that the show cause notice, the draft assessment order and the revised draft assessment order were not served on the assessee and the department’s counsel also could not produce any evidence of such service by submitting that no records are maintained in the office regarding service of any show-cause notices, draft assessment or revised draft assessment upon the assessees which is very strange as to how the respondent/Income Tax Department is working and taking advantage of this situation and the Court having no cooperation and assistance from the
respondent/Income Tax Department, orders in favour of the assessees/petitioners and prejudicial to the interest of department of revenue are being passed in several matters.

The Court on these facts quashed the assessment order with a liberty to the Assessing Officer concerned to serve a copy of the draft assessment and revised draft assessment upon the petitioner and proceed in accordance with law.

This judgement again highlights the latches and glitches on part of department where the courts are coming to the rescue of assessees.

Ramesh Patodia
19-01-2022