2022 (3) TMI 1621 - HC - Income Tax

Reopening of assessment u/s 147 - demand of personal hearing for the petitioner - HELD THAT - The advantage of giving a personal hearing is, this doubt that the concerned officer had that he was unable to discern from return of income what petitioner has submitted, would not have arisen. Therefore, we, without making any observations on merits of the case set aside the order which is impugned in the petition. The matter is remanded for de novo consideration and all rights and contentions of petitioner are kept open. Jurisdictional Assessing Officer (JAO) shall also give a personal hearing to petitioner with atleast 7 working days advance notice. JAO shall permit petitioner to also make written submissions following the personal hearing. If in the order, the JAO proposes to rely on any judgments or order passed by any Court or Tribunal, he shall provide a list thereof to petitioner alongwith the notice for personal hearing and give them an opportunity to deal with those judgments or distinguish those judgments and those submissions during the personal hearing. JAO shall pass a well reasoned order by 30th June 2022 dealing with every submissions of petitioner and give complete reasons for the conclusions that he will be arriving at. The assessment proceedings will not be proceeded with for at least 30 days after passing the order on objections.

Summary

The High Court of Bombay set aside the order for reopening under the Income Tax Act 1961, remanding the matter for reconsideration with a personal hearing for the petitioner. The Assessing Officer must provide a well-reasoned order by June 30, 2022, allowing written submissions and addressing all petitioner's contentions. The assessment proceedings are to be delayed for at least 30 days after the order on objections. Time spent on the case will be excluded from the period of limitation for completing the assessment. No costs were awarded.