Assessment Order framed within 16 Days of Disposal of Objections is Bad in Law: ITAT [Read Order]

The Income Tax Appellate Tribunal ( ITAT ) has recently held that the Assessment order passed just 16 days after the disposal of objections filed by the assessee is bad in law.

Assessee engaged in the business of clothing. The return filed by the assesse for the relevant year was rejected by the Assessing Officer and was processed under Section 143(1) of the Income Tax Act, 1961. Thereafter, the case of the assessee was reopened under section 147 of the Act and a notice for the same was provided to the assesse on 04.07.2016.  On 13.07.2016, the assessee filed objections to the reasons so recorded. The objections raised by the assessee were disposed off by the Assessing Officer on 13.12.2016 and the assessment under section 143(3) of the Act was passed on 30.12.2016.

Before the appellate authorities, the assesse contended that the assessment passed within 16 days of disposal of objections is illegal.

The Tribunal noticed the decision of the Co-ordinate bench in the case of Metaplast Engineering P. Ltd. The Tribunal also referred the decision of the Bombay High Court in Bharat Jayantilal Patel and held that “Respectfully following the same, we hold that the assessment order dated 30.12.2016 framed u/s 147 r.w.s 143(3) of the Act is bad in law and deserves to be quashed.”