DEVYANI FOOD INDUSTRIES LTD. vs. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

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W.P.(C)/5794/2022HC DelhiDLHC01547080202210 May 2022Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MR. JUSTICE DINESH KUMAR SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the procedure adopted by the respondent/Revenue was in violation of and contrary to Section 144B of the Income Tax Act, 1961. Consequently, the final assessment order dated September 27, 2021, was quashed. The matter was remanded back to the Assessing Officer with directions to issue a fresh Show Cause Notice to the petitioner within four weeks. The petitioner was directed to file its response within four weeks thereafter, and the respondent was to pass a reasoned assessment order in accordance with law within four weeks of receiving the response. The High Court did not decide on the merits of the assessment itself, focusing solely on the procedural violation.

What were the facts?

The petitioner, Devyani Food Industries Ltd., filed a writ petition challenging an Assessment Order passed under Section 143(3), a Demand Notice under Section 156, and a Show Cause Notice under Section 274 read with Section 271(1)(c) of the Income Tax Act, 1961, all dated September 27, 2021, for Assessment Year 2012-13. The petitioner contended that the final assessment order was issued without a prior Show Cause Notice, violating Section 144B of the Act and the principles of natural justice. The respondent, National Faceless Assessment Centre, Delhi, admitted that no Show Cause Notice was issued before the final assessment order.

What were the issues?

1. Whether the final assessment order dated September 27, 2021, passed for Assessment Year 2012-13, is liable to be quashed for violation of Section 144B of the Income Tax Act, 1961, and principles of natural justice by not issuing a prior Show Cause Notice. Assessee's Contention: The petitioner argued that the assessment order was passed in violation of Section 144B of the Act and the principles of natural justice, as no prior Show Cause Notice was issued before the final assessment order. Revenue's Contention: The respondent admitted that no Show Cause Notice was issued to the petitioner before passing the final assessment order.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 156,Section 274,Section 271(1)(c),Section 144B

AI-generated summary — verify with the full judgment below

$~22 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 5794/2022 & C.M.No.17309/2022 DEVYANI FOOD INDUSTRIES LTD. ..... Petitioner Through: Mr.Divyansh Jain with Mr.R.Madhav Bera, Mr.Rishi Jaiswal, Ms.Tanya Minocha and Ms.Prachi Rai, Advocates. versus NATIONAL FACELESS ASSESSMENT CENTRE, DELHI ..... Respondent Through: Mr.Vipul Agrawal and Mr.Parth Semwal, Advocates. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE DINESH KUMAR SHARMA O R D E R % 10.05.2022 Present Petition has been filed challenging the Assessment Order passed under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the ‘the Act’), Demand Notice issued under Section 156 of the Act and Show Cause Notice issued under Section 274 read with Section 271(1)(c) of the Act all dated 27th September, 2021 for the Assessment Year 2012-13. Learned counsel for the petitioner submits that the respondent, contrary to the mandate of Section 144B of the Act and in violation of principle of natural justice, has issued the final assessment order dated 27th This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/06/2026 at 11:14:38

September, 2021 without issuing a prior Show Cause Notice. On the last date of hearing, Mr.Vipul Agrawal, learned counsel for the respondent had prayed for some time to obtain instructions. Today Mr.Vipul Agrawal admits that no Show Cause Notice was issued to the petitioner/assesse before passing the final assessment order. Since the procedure adopted by the respondent/Revenue is in violation of and contrary to Section 144B of the Act, the final assessment order dated 27th September, 2021 is quashed and the matter is remanded back to the Assessing Officer, who is directed to issue a fresh Show Cause Notice to the petitioner within four weeks. The petitioner shall file a response thereto within four weeks thereafter. The respondent shall pass a reasoned assessment order in accordance with law within four weeks thereafter. With the aforesaid directions, present writ petition along with pending application stands disposed of. MANMOHAN, J DINESH KUMAR SHARMA, J MAY 10, 2022 KA This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/06/2026 at 11:14:38

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