Karnataka HC Quashes Income Tax Assessment Proceedings u/s 148A(b) Due to Non-Service of SCN

The Karnataka High Court recently invalidated the income tax assessment proceedings conducted under Section 148AB of the Income Tax Act. This decision arose from a case where the assessee contended that the notice under Section 148AB was issued without proper service of the Show Cause Notice (SCN). The court emphasized that the procedural requirement to serve an SCN is crucial and must be adhered to for the proceedings to be valid. The lack of service deprived the assessee of the opportunity to defend themselves effectively, violating the principles of natural justice. The court ruled that due process must be followed meticulously, and any deviation, such as non-service of SCN, renders the proceedings flawed and liable to be quashed. This ruling reinforces the importance of procedural compliance in tax assessments.