2023 (5) TMI 551 - HC - Income Tax

Validity of assessment - main grievance of the petitioner is that there has been a complete violation of principles of natural justice - thirty (30) days time granted to file a return ignored by AO - HELD THAT - The record shows that the petitioner was issued notices of even date i.e., 09.03.2023, concerning Assessment Years (AYs) 2013-14 to 2019-20. A perusal of the said notices would show that the petitioner had been granted time to file its return(s) within thirty (30) days from the date of the service of the notices.In the interregnum AO also served on the petitioner notices dated 20.03.2023, issued under Section 142(1), whereby several pieces of information were sought. The petitioner responded to the same via reply dated 22.03.2023. In the reply, the petitioner put forth before the AO that the information sought could not be furnished within the timeframe granted, which was two (2) days i.e., by 11 00 A.M on 22.03.2023.Therefore, the petitioner had sought accommodation of thirty (30) days to file a reply. What is important is that the petitioner brought to the notice of the AO the fact that via notices dated 09.03.2023, thirty (30) days had been granted to file a return, which would have expired only on 08.04.2023. AO, however, disregarded this request made by the petitioner and proceeded to pass the impugned assessment orders dated 28.03.2023, concerning the aforementioned AYs i.e., AY 2013-2014 to AY 2019-20. AO did not adhere to the timeline given in the notice dated 09.03.2023. Accordingly, the impugned assessment orders which are dated 28.03.2023 concerning the aforementioned AYs are set aside.

Summary

Issues involved: Violation of principles of natural justice in assessment process.

Summary:
The petitioner raised concerns over the violation of principles of natural justice in the assessment process. The petitioner was issued notices for Assessment Years 2013-14 to 2019-20, granting time to file returns within thirty days. Subsequently, the Assessing Officer (AO) sought information under Section 142(1) of the Income Tax Act 1961, to which the petitioner requested an extension of thirty days. Despite this, the AO proceeded to pass assessment orders dated 28.03.2023, disregarding the timeline given in the initial notice. The High Court set aside the impugned assessment orders, allowing the AO to conduct a fresh assessment. The AO is directed to provide all relevant information to the petitioner, grant a personal hearing, and ensure the petitioner furnishes the required information within three weeks from the date of the order. The writ petition was disposed of accordingly.