2023 (8) TMI 1284 - HC - Income Tax

Time limit for completion of assessments and reassessment u/s 153 - Extension of period of limitation after Covid - Validity of Notice calling the petitioner for a hearing challenged in a remand back proceedings - HELD THAT - This Writ Petition challenging the hearing notice dated 26.02.2020 fixed, pursuant to the ITAT's order dated 20.06.2019, is without any merits. By the impugned order, the petitioner was called upon to come for a personal hearing on 05.03.2020. The said notice fixed the hearing on 05.03.2020. The hearing did not take place on account of out break of Covid-19 pandemic. In any event, the petitioner appears to have sent representation on 12.05.2022 requesting for a personal hearing and reminder dated 28.06.2023, even though according to the petitioner the limitation would have expired on 30.06.2021 in terms of the provisions of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. There is no merits in the challenge to the impugned notice. It is however open for the petitioner to send appropriate representation to the effect that the proceedings initiated for the AY 2014-2015 have abated in accordance with Section 153(3) read with proviso to the aforesaid Section of the Income Tax Act, 1961 and the provisions of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Writ Petition is disposed of. Since the petitioner has sent the reminder representation on 28.06.2023, the first respondent shall consider and pass a preliminary order based on the petitioner's representation regarding the limitation

Summary

Issues involved:
The judgment involves the challenge to a notice issued by the Office of the Assistant Commissioner of Income Tax, Income Tax Department, based on the provisions of Section 153(3) and its proviso, in relation to a previous order by the Income Tax Appellate Tribunal (ITAT) for the Assessment Year 2014-2015.

Summary:

Issue 1: Order of the ITAT and subsequent notice
The petitioner partially succeeded in proceedings before the ITAT, which remitted the case back to the respondents for a fresh order. Subsequently, the petitioner was issued a notice by the Income Tax Department, calling for details and supporting documents regarding the claim made before the Appellate Authorities.

Issue 2: Challenge to the notice
The petitioner challenged the notice dated 26.02.2020, citing Section 153(3) and its proviso, arguing that the limitation for passing the order had expired, despite the relaxations due to the Covid-19 pandemic. The petitioner relied on a previous court decision and contended that the notice calling for a personal hearing should be quashed.

Issue 3: Court's decision
The court found the challenge to the notice without merit. It noted that the hearing could not take place due to the pandemic, and the petitioner had sent representations requesting a personal hearing. The court allowed the petitioner to send a representation regarding the abatement of proceedings in accordance with the relevant provisions. The court disposed of the writ petition, directing the respondent to consider and pass a preliminary order within six weeks based on the petitioner's representation on the limitation issue. If the issue is decided against the petitioner, the respondent shall pass orders on merits in line with the ITAT's order. No costs were awarded, and connected petitions were closed.