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2023 (11) TMI 82 - HC - Income TaxValidity of assessment - shorter time period to respond - case of the petitioner is that petitioner has not received the notice although it would be the contention of the Department that the said notice was posted in a web portal and therefore it was for the petitioner to respond to the same - HELD THAT - The notice has been uploaded and sent to the petitioner at about 2.50 am on 28.03.2022 calling upon the petitioner to respond by 29.03.2022 by 23.59 Hours as the assessment was getting time barred on 30.03.2022. It is clear that the Impugned Order has been passed to ensure that the assessment does not get barred by limitation under Section 153 of the Income Tax Act, 1961. The procedure under Section 144B of the Income Tax Act, 1961, as in force between 01.04.2021 till 30.03.2022 was required to be followed. It has not been fully followed. In this case, no Draft Assessment Order has been passed by the Assessing Unit as is contemplated under Section 144B of the Income Tax Act, 1961. Thus, there is a material violation of the procedure prescribed under Section 144B of the Income Tax Act, 1961. Consequently, the Impugned Order is set aside and the case is remitted back to the respondents to pass a fresh order on merits and in accordance with law within a period of six (6) months from the date of receipt of a copy of this order.
Issues:
The issues involved in the judgment are the validity of the Impugned Assessment Order dated 30.03.2022, the reopening of assessment under Section 148 of the Income Tax Act, 1961 during the Covid-19 pandemic lockdown, the contention regarding notice delivery via web portal, the compliance with procedures under Section 144B of the Income Tax Act, 1961, and the necessity for a Draft Assessment Order. Impugned Assessment Order Validity: The petitioner challenged the Impugned Assessment Order dated 30.03.2022, which was issued after a notice under Section 148 of the Income Tax Act was sent during the Covid-19 lockdown period. The petitioner claimed not to have received the notice, while the Department argued that it was posted on a web portal for the petitioner to respond. Compliance with Section 144B Procedure: The judgment highlighted that the Impugned Order was passed to prevent the assessment from being time-barred under Section 153 of the Income Tax Act, 1961. However, it was noted that the procedure under Section 144B was not fully followed, as no Draft Assessment Order was issued by the Assessing Unit as required by law. Remittal and Directions: As a result of the procedural violations, the Impugned Order was set aside, and the case was remitted back to the respondents to pass a fresh order within six months. The quashed Impugned Order was to be treated as a Draft Assessment Order/Show Cause Notice for the petitioner to respond. The respondents were instructed to ensure proper arrangements in the portal for the petitioner to upload a reply and to follow the correct procedure under Section 144B of the Income Tax Act. Disposition: The writ petition was disposed of with the above directions, and no costs were awarded. Connected miscellaneous petitions were closed as a consequence of the judgment.
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