The Gujarat High Court nullifies an income tax assessment order citing violations of Section 144B of the Income Tax Act
Case: DHVANIL HEMENDRA RESHAMWALA Versus INCOME TAX OFFICER, WARD 1(3)(1)
Coram: HONOURABLE MR. JUSTICE BIREN VAISHNAV and HONOURABLE MS. JUSTICE NISHA M. THAKORE
Case No.: R/SPECIAL CIVIL APPLICATION NO. 7613 of 2022
Court Observation: “indisputably, the aspect of non-service of draft assessment order, which was otherwise required to be sent along with show cause notice as per the procedure prescribed under Section 144B(1), clause (xvi)(b) of the Income Tax Act has been confirmed.”
“The compliance of mandatory procedure as envisaged in the aforesaid provision ie. of issuance of show cause notice, the draft assessment order, the final assessment order and the consequential demand notice is no more res integra,”
“Consequently, the demand notice dated 30.03.2022 issued by the respondent authorities under Section 144 of the Act against the writ applicant is also quashed and set aside. The matter is remanded back to the Assessing Officer from the stage of issuance of draft assessment order along with show cause notice.”
“The Assessing Officer is expected to pass a draft assessment order and thereafter send the same to the assessee in accordance with the provisions of Section 144B of the Act,”
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The Gujarat High Court nullifies an income tax
