2024 (2) TMI 928 - HC - Income Tax

Validity of reassessment order/proceedings - as argued concerned authority has neither considered reply filed alongwith documents nor supplementary reply by the petitioner - HELD THAT - Perusal of the impugned order indicates that though it has been recorded in it that reply of the assessee has been considered, but there is no reference with respect to reply and documents filed by the petitioner and there is no consideration with respect to supplementary/additional reply filed by the petitioner. So far as plea of the respondents that supplementary reply filed by the petitioner was not received by the concerned authority, is falsified from the document filed by the respondents themselves with their reply it has been clearly reflected that on 03.04.2023 reply from the assessee was filed. Thus it is apparently clear that concerned authority has neither considered reply filed alongwith documents nor supplementary reply filed by the petitioner. There is no speaking order assigning reason for conclusion arrived at that income/transactions has escaped assessment in the Assessment Year 2019-2020. Thus reopening order and notice are quashed and set aside and matter is relegated to the concerned authority for deciding afresh by taking into consideration reply as well as supplementary reply alongwith documents filed therewith, by passing a speaking and reasoned order.

Summary

Issues involved:
The judgment involves the assessment of escaped income/transactions in the Assessment Year 2019-2020 based on an order and notice issued to the petitioner.

Assessment of Escaped Income/Transactions:
The petitioner challenged an order and notice concluding that income/transactions amounting to Rs. 2,73,28,43,663/- had escaped assessment in the Assessment Year 2019-2020. The petitioner contended that the details provided in response, which were already accounted for in the company's Books of Account, were not considered by the authority. Additionally, a supplementary reply filed by the petitioner was allegedly not taken into account. The respondents argued that the petitioner's reply had been considered, and the supplementary reply filed on 03.04.2023 was not received. However, evidence submitted by the respondents themselves contradicted this claim, showing that the reply was indeed filed on the specified date. The court observed that the authority failed to consider the replies and documents submitted by the petitioner, leading to a lack of reasoning for the conclusion that income had escaped assessment.

Judgment and Order:
The High Court quashed the order and notice dated 13.04.2023, directing the concerned authority to reconsider the matter. The court instructed the authority to take into account both the initial and supplementary replies along with the accompanying documents. The authority was mandated to provide a speaking and reasoned order after giving the petitioner an opportunity for a personal hearing if requested. The court ordered prompt communication of the decision to the petitioner, thereby disposing of the petition and any related applications.