Orissa HC Sets aside Order passed by NFAC without allowing 7 days Time Stipulated u/s 144B of ...

The Orissa High Court has set aside an order passed by the National Faceless Assessment Centre (NFAC) because it failed to provide the mandatory seven-day period for the assessee to respond to the show-cause notice. The court found this to be a clear violation of the procedure laid down in Section 144B of the Income Tax Act. This section, which governs faceless assessments, stipulates a specific timeframe to ensure that taxpayers have an adequate opportunity to present their case. By not adhering to this statutory timeline, the NFAC had violated the principles of natural justice. The High Court quashed the assessment order and remanded the matter back for a fresh adjudication, with a clear directive to follow the prescribed procedure and provide the assessee with the full statutory period to file their response.