Absence of Faceless Assessment envisaged u/s 144B of Income Tax Act Invalidate SCN: Punjab & Haryana HC

The Punjab and Haryana High Court has ruled that the absence of faceless assessment as envisaged under Section 144B of the Income Tax Act invalidates the show cause notice (SCN) issued to the taxpayer. The case involved a taxpayer who challenged the SCN on the grounds that it was issued without following the faceless assessment procedure mandated by the Act. The court held that the faceless assessment scheme is a crucial part of the tax administration process, aimed at ensuring transparency and reducing human interface. The failure to adhere to this procedure renders the SCN invalid. This ruling underscores the importance of following due process in tax assessments and reinforces the need for tax authorities to comply with statutory requirements. It also provides relief to taxpayers who may have been subjected to arbitrary assessments without the safeguards provided by the faceless assessment scheme.