9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 334 - HC - Income TaxInitiation of penalty proceedings - HELD THAT - We are of the view that the impugned assessment order, passed by respondent/revenue under Section 143(3) read with Section 144B of the Income Tax Act, 1961 and notice of demand issued under Section 156 as well as notices for initiating penalty proceedings issued u/s 274 read with Section 270A, and Section 271AAC(1) of the Act, should be set aside, with liberty to the AO to pass a fresh order, after considering the reply/objections of the petitioner. AO is also directed to accord a personal hearing to the petitioner and/or his authorized representative. AO will intimate to the petitioner, the date and time fixed, for personal hearing, via his registered e-mail ID. The AO will also send the link to the petitioner, for the said purpose.
Issues:
Assessment order challenged for breach of natural justice and lack of response time accommodation. Analysis: The petitioner challenged an assessment order dated 22.04.2021, along with notices of demand and penalty proceedings initiation. The petitioner contended a breach of natural justice due to insufficient response time. A show cause notice-cum-draft assessment order was issued on 16.04.2021, requiring a response by 19.04.2021. The petitioner, facing difficulties as his wife and son were hospitalized due to COVID-19, sent a preliminary reply citing the inability to provide a detailed response. Despite subsequent replies, the petitioner approached the court seeking relief. The court noted the failure of the Assessing Officer (AO) to address the petitioner's request for an extension. The petitioner argued the inability to respond timely due to personal circumstances. The court found merit in the petitioner's contentions and set aside the assessment order, directing the AO to consider the petitioner's objections and provide a personal hearing. The court disposed of the petition accordingly, emphasizing the importance of natural justice and proper response time accommodation in tax assessments.
|
