2021 (8) TMI 488 - HC - Income Tax

Validity of Assessment Order u/s 143(3) r.w.s.144B - HELD THAT - As final assessment order has been passed in violation of principles of natural justice inasmuch as the petitioner did not have a reasonable opportunity to file a reply to the Show Cause Notice and draft assessment order dated 09th June, 2021, as the portal of the Respondent was not working between 1st June, 2021 and 17th June, 2021 i.e. the last date of filing the reply to the Show Cause Notice-cum-draft assessment order. The impugned assessment order dated 18th June, 2021 is set aside and the matter is remanded back to the Respondent for passing a fresh assessment order in accordance with law and after considering the Petitioner s reply. Petitioner is directed to file its reply to the Show Cause Notice and draft assessment order dated 09th June, 2021 on the portal of the Respondent within ten days. Respondent in turn is directed to facilitate the filing of the said reply on the portal on behalf of legal heir of the deceased-assessee.

Summary

Issues:
Challenge to Assessment Order under Income Tax Act, 1961 for assessment year 2018-19.

Analysis:
The petition challenged the Assessment Order dated 18th June, 2021, passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for the assessment year 2018-19. The Petitioner argued that the Respondent made an addition of ?1,06,95,929 against the returned income of ?27,59,656, resulting in a total assessed income of ?1,34,55,590. The Petitioner contended that the Respondent failed to provide reasons for the addition and did not consider the Petitioner's inability to file a reply to the Show Cause Notice due to technical issues with the portal. Additionally, it was highlighted that no Show Cause Notice was served upon the Petitioner as the legal heir of the deceased assessee despite informing the Respondent about the death of the assessee.

The Court observed that the final assessment order was passed in violation of principles of natural justice as the Petitioner did not have a reasonable opportunity to respond to the Show Cause Notice and draft assessment order due to technical issues with the portal. The Court set aside the assessment order dated 18th June, 2021, and remanded the matter back to the Respondent for passing a fresh assessment order in accordance with the law after considering the Petitioner's reply. The Petitioner was directed to file its reply within ten days, and the Respondent was instructed to facilitate the filing of the reply on the portal on behalf of the legal heir of the deceased assessee.

In conclusion, the present writ petition and application were disposed of with the mentioned directions. The Court ordered the upload of the order on the website and forwarded a copy to the learned counsel through e-mail.