RASHTRA DHARMA PARISHAD vs. ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTION)
What did the High Court hold?
The High Court held that Ext.P15, the final assessment order, was liable to be set aside. The reasoning was that the petitioner was not issued with a show cause notice prior to the issuance of Ext.P15, which is contrary to the statutory provisions of Section 144B of the Income Tax Act. The Court quashed Ext.P15, making it clear that no opinion was expressed on the merits of the matter. The authorities were permitted to issue a fresh assessment order after following the prescribed procedure under Section 144B. The ratio decidendi is that compliance with the procedural safeguards, specifically the issuance of a show cause notice before passing a final assessment order under the faceless assessment scheme, is mandatory.
What were the facts?
The petitioner, Rashtra Dharma Parishad, filed a writ petition before the High Court of Kerala challenging an order (Ext.P15) issued under the faceless assessment scheme. The petitioner contended that the final assessment order was passed without providing any opportunity or issuing a draft assessment order or show cause notice, which they argued was contrary to Section 144B of the Income Tax Act. The Income Tax Department, represented by its Standing Counsel, conceded that while a draft assessment order was uploaded, a show cause notice was not issued to the petitioner prior to the final order.
What were the issues?
1. Whether the final assessment order (Ext.P15) passed under the faceless assessment scheme is invalid for not issuing a show cause notice to the petitioner prior to its issuance, thereby violating the provisions of Section 144B of the Income Tax Act? Assessee's Contention: The petitioner argued that the issuance of Ext.P15, the final assessment order, without affording any opportunity and without issuing a draft assessment order or show cause notice, is contrary to Section 144B of the Income Tax Act. Revenue's Contention: The Income Tax Department acknowledged that a draft assessment order was uploaded but fairly conceded that the show cause notice, which ought to have been issued to the petitioner, was not issued.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT
Petitioner has approached this Court, challenging Ext.P15 order which has been issued under the faceless assessment scheme.
The learned counsel appearing for the petitioner submits that without affording any opportunity and without issuing a draft assessment order or show cause notice, the assessing officer has issued Ext.P15 final assessment order, which is contrary to the provisions of Section 144B of the Income Tax Act.
Sri. Christopher Abraham, learned Standing Counsel for the Income Department would submit that the a draft assessment order had indeed uploaded by the assessing officer. However, he very fairly submits that the show cause notice which ought to have been issued to the petitioner was not so issued.
Taking into account the submissions made by the learned counsel appearing for the petitioner and the learned Standing Counsel, I am of the opinion that Ext.P15 order is only to be set aside as the petitioner was not issued with a show cause notice prior to the issuance of Ext.P15. This is WP(C) NO. 8659 OF 2021 3 obviously contrary to the statutory provisions.
In the result, the writ petition is allowed, quashing Ext.P15 order, making it clear that this Court has not expressed any opinion on the merits of the matter. It is open to the authorities to issue fresh assessment order, after following the procedure prescribed in Section 144B of the Income Tax Act. I place on record my sincere appreciation for the extremely fair stand taken by the learned Standing counsel for the Income Tax Department. GOPINATH P. JUDGE ajt
WP(C) NO. 8659 OF 2021 4
Appendix — schedule of exhibits
More judgments on Section 144B
- Sar Business Tradelink Private Limited… vs Income Tax Officer, Ward - 1(2), RaipurITA 599/RPR/2026[2014-15]Status: Heard21 Oct 2026AY 2014-15
- Mohammed Javed Bhati, Sikar vs Income Tax Officer, Ward 1, SikarITA 994/JPR/2025[2018-19]Status: Disposed21 Oct 2026AY 2018-19
- Haresh Sharma, Ahmedabad vs ITO, Ward 5(3)(1), AhmedabadITA 2125/AHD/2026[2019-2020]Status: Disposed21 Oct 2026AY 2019-2020
- Haresh Sharma, Ahmedabad vs ITO, Ward 5(3)(1), AhmedabadITA 2124/AHD/2026[2019-20]Status: Disposed21 Oct 2026AY 2019-20
- Hemal Paresh Madeka, Rajkot vs Asst.Commissioner of Income Tax…ITA 955/RJT/2026[2020-21]Status: Disposed19 Oct 2026AY 2020-21
Recent GST High Court judgments
Search GST case law →- Prabhudatta Mishra vs. The Commissioner Of Commercial Taxes And Goods And Services Tax, OdishaOrissa · 15 Oct 2026
- Rajesh Kumar Gupta vs. Joint Commissioner Of GST (Appeal), Territorial Range, BolangirOrissa · 15 Oct 2026
- M/S. Attitude Exim PVT. LTD., Rourkela vs. The Commissioner Of CT And GST, CuttackOrissa · 15 Oct 2026
- M/S.Pradeep Kumar Mahapatra, Bhubaneswar vs. Superintendent Bhubaneswar-Iii Circle, CGST Range, BhubaneswarOrissa · 15 Oct 2026
- Dillip Kumar Behera vs. The Assistant Commissioner Of State Tax, Mayurbhanj CircleOrissa · 15 Oct 2026
