2021 (11) TMI 1196 - HC - Income Tax

Validity of Assessment order u/s 143 (3) r/w 144 and 147 - Violation of principle of natural justice - non considering assessee s objections/ replies or documents submitted - HELD THAT - Respondent No.1 has not properly or correctly considered or appreciated the said objections / replies and the documents submitted by the petitioner and has proceeded to pass the impugned assessment order which is an unreasoned and nonspeaking order without considering or appreciating the several contentions urged by the petitioner or documents produced by him or hearing the petitioner and consequently the impugned order being violative of principles of natural justice the same deserves to be quashed and the matter remitted back to the respondent for reconsideration afresh in accordance with law within a stipulated time frame. Petition is hereby allowed. The impugned Assessment order passed by respondent as well as consequential Demand Notice are hereby quashed. Matter is remitted back to the respondent for reconsideration afresh in accordance with law within a period of three months from the date of receipt of a copy of this order.

Summary

The High Court of Karnataka allowed the petition seeking to quash the Assessment order and Demand Notice issued under the Income Tax Act for the Assessment year 2011-12. The court found that the respondent did not properly consider the objections and documents submitted by the petitioner, leading to an unreasoned order. The court quashed the order, remitted the matter back to the respondent for reconsideration within three months, and allowed the petitioner to submit additional objections and documents.