Element 14 India Private Limited v. Assessment Unit
Income-tax – Faceless assessment – Natural justice – Non-sharing of complete CBIC invoice-wise import data
Case brief
What is this about?
Element 14 India Private Limited v. Assessment Unit, Income Tax Department (NFAC) and others; WP No. 7223 of 2026 (T-IT), High Court of Karnataka, 07-04-2026, S Sunil Dutt Yadav J. Natural justice violation in faceless assessment: incomplete CBIC data relied upon; entry-wise/bill-of-entry-wise import returns not shared with assessee; all information in Department's custody must be shared at first instance; incomplete materials unusable absent completing materials; no adverse presumption from incomplete data. Sections 143(3), 144C(13), 144B, 144C(5), 144(12) Income Tax Act 1961; AY 2022-23; DRP directions; assessment order dated 29.01.2026 (DIN ITBA/AST/S/143(3)/202526/1085312943(1)) set aside and remitted for fresh final assessment; unreconciled purchases Rs. 83,47,22,507; assessee-claimed difference Rs. 2,04,43,810.
What did the court decide?
Final assessment order dated 29.01.2026 (Annexure-A) set aside; matter remitted to the stage of passing of final assessment; authority to proceed with adjudication only after sharing the information in its custody with the petitioner and affording appropriate opportunity, including for any additional information that has come to the Revenue; Prayer II (DRP directions, Annexure-J) not pressed and left unadjudicated.