AO passes order without issuing any show-cause notice and draft assessment order as stipulated in the Faceless Assessment Scheme

Last updated: 16 August 2021

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Quick Summary

The Delhi High Court has ruled that the Faceless Assessment Scheme mandates the issuance of a show-cause notice and a draft assessment order before a final assessment order can be made. In this case, the Assessing Officer failed to follow this procedure, violating both the scheme's rules and the principles of natural justice. Consequently, the court set aside the assessment order, demand notice, and penalty notice, remanding the case back for proper procedure.

Court :
Delhi High Court

Brief :
This Court is of the view that the Faceless Assessment Scheme mandatorily provides for issuance of a prior show cause notice and draft assessment order before issuing the final assessment order.

Citation :
W.P.(C) 7785/2021 & Cm Appl. 24273-74/2021

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