Madras HC quashes Income Tax Order passed without Issuance of SCN, mandatory Draft Assessment Order [Read Order]

The Madras High Court quashed the Income Tax Order passed without issuance of show cause notice, mandatory draft assessment order.

The petitioner, Abdul Azeez Rahamathunisa is an octogenarian aged about 80 years. The petitioner had suffered personal bereavement on account of death of her Power Holder who was taking care of the petitioner’s requirements as the petitioner is a NRI.

The petitioner has challenged the impugned assessment order on the ground that the aforesaid order was not preceded with the issuance of a show cause notice and draft assessment order as is contemplated under Section 144B of the Income Tax Act, 1961.

The petitioner submits that the petitioner is a senior citizen residing in Dubai and that there was a bereavement and that the petitioner herself contracted COVID at the time, when three notices were issued under Section 142(1) of the Income Tax Act, 1961.

The single bench of Justice C.Saravanan noted that the impugned order has been passed without issuance of a show cause notice and mandatory draft assessment order, the impugned order passed by the respondent cannot be sustained.

“The case is remitted back to the first respondent to pass a speaking order within a period of 60 days from the date of receipt of a copy of this order. The impugned order which stands quashed by this order shall be treated as a show cause notice and draft assessment order,” the court said.

The court added, “the respondents are also given liberty to issue corrigendum, if any, within a period of 15 days from the date of receipt of a copy of this order. The petitioner shall give appropriate reply within a period of 30 days thereafter. The first respondent shall pass the final order preferably before the expiry of 60 days from the date of receipt of a copy of this order. The respondents are directed to suitably direct the administrator of the Web Portal to facilitate the petitioner to file a reply and to attend personal hearing through Video Conferencing either by herself or by her authorized representative.”

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