Taxontips
No Result
View All Result
Wednesday, June 7, 2023
Login/ Register
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Talk to an Expert
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
No Result
View All Result
Taxontips
No Result
View All Result

Delhi High court passes an order to quash the Assessment order making addition to income of assessee passed under Faceless assessment system

Income tax Expert by Income tax Expert
June 2, 2021
in Case Laws, Income Tax News
0
GSTR 3B can now be recitified – Landmark Judgement by Delhi High court
134
SHARES
1.7k
VIEWS
image_pdfPDFimage_printPrint

Earlier we had discussed about various Writ petition being filed against the assessment order passed under Faceless assessment system and now Hon’ble Delhi High Court has passed order in few of such writ petition against the Income tax department wherein procedure of faceless assessment and principle of natural justice has not been followed.

The above judgement has been passed in case of YCD INDUSTRIES (petitioner) versus NATIONAL FACELESS ASSESSMENT CENTRE, DELHI (Respondant). The decision was announced on 27.05.2021.

Facts of the case:

The petitioner had filed his return qua the Assessment Year (AY) 2018-2019 on 30.10.2018. Via this return, the petitioner had declared a loss of Rs.58,43,378/-.

Petitioner was issued a notice u/s 143(2) on 22.09.2019 and later on it’s case was transferred to faceless system.

Later various notices were issued to the petitioner and thereafter, the respondent/revenue directed the petitioner, via notice dated 08.02.2021, to explain its position, with regard to the unsecured loan and the increase in share capital and share application money, qua the assessment year in issue.

Petitioner filed it’s reply within due time. However, after considering the reply, respondent made an addition to the income of assessee and income was added u/s 115BBEE of the Act and a tax demand was raised.

 

Petitioner’s (Assessee’s) contention:

1.  Contrary to the mandate of Section 144B of the Income Tax Act, 1961 (in short, ‘the Act’), and the Faceless Assessment Scheme, 2019 (in short, ‘the Scheme’), no show cause notice-cum-draft assessment order was served on the petitioner, before the passing of the impugned assessment order dated 20.04.2021, as also the impugned notices issued under Section 156 and Section 274 read with Section 270A of the Act, of even date.

2. There has been a breach of the principle of natural justice.

 

Respondent’s (Revenue’s) contention:

1. Before issuance of the impugned assessment order, several opportunities were given to the petitioner, and therefore, the case set up on behalf of the petitioner that there has been a breach of principles of natural justice, is not tenable.

 

Judgement:

The statute [i.e., Section 144B(1)(xiv), (xv), (xvi)(b) and (xxii)] provides for issuance of a show cause notice-cum-draft assessment order, and an opportunity to the petitioner/assessee to respond to the same where income of the assessee is varied by the respondent/revenue.

As a matter of fact, had the show cause notice cum draft assessment been served on the petitioner, its authorised representative could have requested for a personal hearing in the matter.

The respondent/ revenue, to our minds, could not have side-stepped such safeguards put in place by the legislature.

The justification proffered by Mr. Bhatia that notices were issued prior to the passing of the impugned assessment order, does not impress us.

Accordingly, the impugned assessment order and the notice issued under Section 156 and Section 270A read with Section 274 of the Act are set aside.

 

Thus, according to above order the addition made in assessment has been removed and the case has been again set aside to Assessing officer to decide by issuing show cause notice. Thus, it is not a complete deletion of addition made but a fresh opportunity has been provided to Assessee to submit his reply against show cause notice.

 

Similar order has been passed by Hon’ble Delhi high court on the same day in case of MS LOKESH CONSTRUCTIONS P LTD versus THE ASSISTANT COMMISSIONER OF INCOME TAX.

 

Thus, based on the above judgement it can be said that the principle of natural justice which was upheld earlier also before faceless assessment that proper opportunity needs to be given to the assessee and no assessment can be completed without issuing show cause notice in a case where there is a variance from the income declared by assessee, is being upheld even in faceless assessment.

 

To download order in case of YCD industries CLICK HERE.

To download order in case of MS Lokesh Constructions P Ltd CLICK HERE

image_pdfPDFimage_printPrint
Tags: Delhi high courtdelhi high court judgementincome tax case lawincome tax judgementincome tax updatelatest case lawlatest judgement
Previous Post

SEBI- Empanelment of forensic auditors for conducting forensic audit of listed companies

Next Post

RBI’s reply on ban on dealing in cryptocurrencies after Supreme court’s order

Related Posts

Income Tax Return
Income Tax News

ITR 2 is now available on e-filing website for FY 2022-23 i.e. AY 2023-24 | File ITR with experts on Taxontips

June 6, 2023
Last opportunity to file Income tax return for F.Y. 2018-19 | Belated return u/s 139(4) of the Income tax Act
Income Tax News

Condonation of delay in filing refund claim and claim of carry forward of losses under Section 119(2)(b) of the I.T. Act

June 5, 2023
Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20-
Income Tax News

Due date for filing SFT extended from 31.05.2023 for FY 2022-23?

June 1, 2023
Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20-
Income Tax News

E-appeal scheme, 2023 announced by CBDT, JCIT(A) will now hear appeal [Read notification]

May 31, 2023
Guidelines for manual selection of returns for Complete Scrutiny during the financial-year 2019-20-
Income Tax News

Limit of exempt income for leave encashment for non-govt employees increased to Rs. 25 lakh [Read notification]

May 30, 2023
ICAI has announced a new MBA programme for Diploma in Management and Business Finance
Income Tax News

ANNUAL FEE CIRCULAR 2023-24 by ICAI for it’s members

May 29, 2023
Next Post
Cryptocurrency bill will be introduced in Parliament to ban other cryptocurrency in India

RBI's reply on ban on dealing in cryptocurrencies after Supreme court's order

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Google Custom search

Recent Posts

  • U.S. Corporations Owned by Foreign/ Indian Shareholders – Comprehensive Tax Implications and Reporting Requirements
  • ITR 2 is now available on e-filing website for FY 2022-23 i.e. AY 2023-24 | File ITR with experts on Taxontips
  • Condonation of delay in filing refund claim and claim of carry forward of losses under Section 119(2)(b) of the I.T. Act
  • ₹1,57,090 crore gross GST revenue collected for May 2023; clocks 12% Year-on-Year growth
  • Due date for filing SFT extended from 31.05.2023 for FY 2022-23?

Recent Comments

  • Notification under PMLA by Ministry of Finance which could affect CA, CS and CMA - Taxontips on CA, CS and CMA now under PMLA. KYC of clients required
  • ITR 4 is now available on e-filing website for FY 2022-23 i.e. AY 2023-24 | File ITR with experts on Taxontips – Taxontips on Businessman with turnover below 1 crore and having profit below 8% need to compulsorily get books of accounts audited: Let’s find out
  • Can a person earning income from speculative business transaction file return u/s 44AD of Income tax act - Taxontips on How to calculate turnover in case of intra day and future and option trading for Income Tax purpose?
  • Extension of last date for updation of Member’s Profile with GSTIN at Self Service Portal – Till 23rd April, 2023 - Taxontips on Updation of Member’s Profile at Self Service Portal with GSTIN to get GST credit till 15.04.2023
  • Akshay Kadam on New error faced in the new Income tax e-filing portal related to log-in of an assessee | E-filing 2.0

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Browse Topics by Date

June 2023
M T W T F S S
 1234
567891011
12131415161718
19202122232425
2627282930  
« May    
  • GSTR 9/ 9C extended : AGAIN

    GSTR 9/ 9C due date to be extended to 31.10.2020 | E-invoicing will be voluntary in the beginning

    6456 shares
    Share 2582 Tweet 1614
  • How to pay Membership and COP fees of ICAI for 2020-21 |

    6344 shares
    Share 2538 Tweet 1586
  • Code/ Nature of payment 6CR updated by NSDL in challan 281 for paying TCS on sale of goods

    5682 shares
    Share 2273 Tweet 1421
  • Are all the due dates of tax audit and Income tax return for FY 2019-20 extended to 31.03.2021 by the bill presented in Lok sabha Dt. 18.09.2020

    4771 shares
    Share 1908 Tweet 1193
  • SFT transaction mentioned in Form 26AS | What does it mean? | Who reports it? | SFT codes transaction type

    3991 shares
    Share 1596 Tweet 998

Recent Notification

US tax

U.S. Corporations Owned by Foreign/ Indian Shareholders – Comprehensive Tax Implications and Reporting Requirements

June 7, 2023
Income Tax Return

ITR 2 is now available on e-filing website for FY 2022-23 i.e. AY 2023-24 | File ITR with experts on Taxontips

June 6, 2023

RSS Taxontips

  • U.S. Corporations Owned by Foreign/ Indian Shareholders – Comprehensive Tax Implications and Reporting Requirements
  • ITR 2 is now available on e-filing website for FY 2022-23 i.e. AY 2023-24 | File ITR with experts on Taxontips
  • Condonation of delay in filing refund claim and claim of carry forward of losses under Section 119(2)(b) of the I.T. Act
  • ₹1,57,090 crore gross GST revenue collected for May 2023; clocks 12% Year-on-Year growth
  • Due date for filing SFT extended from 31.05.2023 for FY 2022-23?
  • E-appeal scheme, 2023 announced by CBDT, JCIT(A) will now hear appeal [Read notification]
  • Limit of exempt income for leave encashment for non-govt employees increased to Rs. 25 lakh [Read notification]
  • ANNUAL FEE CIRCULAR 2023-24 by ICAI for it’s members
  • Instructions for conducting scrutiny of returns for FY 2019-20 onwards under GST [Read instructions]
  • Extension in time limit for filing Form 10A, 10AB, 10BD, 10 etc. in relation to trust under Income tax act

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Site menu

  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Taxontips

TaxOnTips provides you all tax related solutions in easy way and update you with its regular updates & notifications Visit us for details.
We are based in Jaipur, India

© 2019-2023 Taxontips.com - Tax assistance at your Fingertips

No Result
View All Result
  • Login/Signup
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • About us
  • Contact us
  • Ask an expert/ Talk to an expert
  • Q & A
  • Privacy Policy
  • Terms of use

© 2019-2023 Taxontips.com - Tax assistance at your Fingertips

Book Phone consultation with expert

Sitting home or at your office and don't have time to visit CA's office or don't know where to consult CA. Book your consultation with an expert practicing Chartered Accountant and get your query solved.

Book a phone consultation for 30 minutes with our expert at a very basic cost.

Book consultation

No thanks, I'm not interested!