2024 (2) TMI 51 - HC - Income Tax

Validity of order of assessment u/s 144 r.w.s. 143(3A) - inability and omission on the part of the petitioner to file its response/reply to the notices and to appear before the respondents and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause - HELD THAT - A perusal of the material on record will indicate that the respondents have noted that the petitioner has not submitted its reply to the Show Cause Notice nor filed any documents in support of its claim. In our opinion, the grounds, facts and the reasons set out of the Memorandum of Writ Petition for the purpose of contending that the inability and omission on the part of the petitioner to submit its reply and contest the proceedings, are valid and sufficient. Under these circumstances, adopting a justice oriented approach and in order to provide one more opportunity to the petitioner, without expressing any opinion on the merits/demerits of the rival contentions, we deem it just and appropriate to show last indulgence in favour of the petitioner by setting aside the impugned order and remitting the matter back to the respondent No. 2 for reconsideration afresh and proceed further in accordance with law. The impugned order is set aside. The matter is remitted back to the respondent No. 2 the National Faceless Assessment Centre Now known as National e-Assessment Centre for reconsideration afresh in accordance with law.

Summary

Issues involved:
The petition seeks relief in the form of a Writ of Certiorari to quash various orders and notices related to assessment and penalties under the Income Tax Act 1961.

Assessment Order Challenge:
The petitioner, a Primary Agricultural Credit Co-operative Society, challenged the Assessment Order dated 31.03.2021 for the assessment year 2018-19. The petitioner cited genuine lapses in attending proceedings due to unfamiliarity with online procedures and a delay in providing necessary details to contest the assessment. The respondent determined unexplained cash credit and made additions to the declared income, leading to a substantial total income discrepancy. The petitioner, after consulting a new professional, filed a statutory appeal on 08/11/2021.

Legal Arguments:
The petitioner relied on judgments by the Hon'ble Apex Court to support their case. The respondents contended that despite opportunities, the petitioner did not respond to the Show Cause Notice, justifying the impugned order. The court considered the submissions and material on record.

Judgment:
After careful consideration, the court found the petitioner's reasons for non-compliance valid and sufficient. In a justice-oriented approach, the court set aside the impugned order and remitted the matter back to the respondent for reconsideration. The court granted the petitioner another opportunity to respond and directed the respondent to proceed in accordance with the law upon receiving the petitioner's submission.

Conclusion:
The court allowed the petition, setting aside the impugned order and remitting the matter for fresh consideration. The respondent was directed to issue a notice to the petitioner for further proceedings in compliance with the law, emphasizing the importance of the petitioner's timely response within fifteen days.