2016 (5) TMI 1349 - HC - Income Tax

Assessment of taxable income - order passed when none present on behalf of the Assessee - Held that - From the impugned order, it is evident that on the date when the order was passed there was none present on behalf of the Assessee. The impugned order refers to one Mr. Vasan, alleged to be a former Chartered Accountant of the Petitioner, who had appeared on 23rd March, 2016 before the AO and had sought time to appear on a later date. However, thereafter, none appeared. While, ordinarily, the Court would have required the Petitioner to avail the statutory remedy of going before the CIT(A), in the above extraordinary circumstances where it appears that for bonafide reason none could be present for the Assessee before the AO, the Court considers it appropriate that the AO should be directed to pass a fresh assessment order after giving the Assessee an effective opportunity of being represented.

Summary

Issues:
1. Validity of the assessment order for the Assessment Year 2013-14.
2. Representation of the Assessee before the Assessing Officer.
3. Direction for fresh assessment order due to absence of representation.
4. Timely opportunity for the Assessee to collect documents and engage a representative.
5. Disposal of the petition and pending applications.

Analysis:

1. The judgment deals with the validity of the assessment order for the Assessment Year 2013-14, where the taxable income was assessed at a specific amount. The petition was filed by the Assessee through her mother, citing the Assessee's medical condition of bipolar disorder and ongoing treatment since 2008. Medical certificates supporting this claim were submitted as evidence.

2. It was noted that during the assessment proceedings, there was a lack of representation on behalf of the Assessee. The order referred to a former Chartered Accountant who sought time to appear but subsequently did not do so. This raised concerns about the absence of proper representation during the assessment process.

3. Despite the usual requirement for the Assessee to approach the CIT(A) for statutory remedies, the Court acknowledged the exceptional circumstances where no representation was possible before the Assessing Officer due to genuine reasons. Consequently, the Court directed the Assessing Officer to set aside the impugned order and conduct a fresh assessment, ensuring the Assessee's effective representation.

4. Recognizing the need for the Assessee to gather relevant documents and appoint an authorized representative, the Court granted time for these preparations. The matter was scheduled to be reconsidered by the Assessing Officer on a specified date, allowing for a fresh assessment order to be issued promptly after providing the Assessee with a fair hearing through her authorized representative.

5. Finally, the judgment concluded by disposing of the petition and related applications in line with the directions given for a fresh assessment order with proper representation, ensuring the Assessee's rights were upheld within the legal framework.

This comprehensive analysis highlights the key issues addressed in the judgment, focusing on the assessment process, representation of the Assessee, and the Court's directions for a fair and effective reassessment in light of the unique circumstances presented.