The Madras High Court has issued a directive to the income tax authorities to conduct a re-do assessment, providing the petitioner with a fair opportunity within a 12-week timeframe in a case where the petitioner’s Chartered Accountant, a senior citizen, was unable to represent the client during the COVID-19 pandemic when the income tax notices were issued.
The Petitioner Pallazzio Energy Farms LLP impugned the order dated 30.03.2021 made under Section 264 of the Income Tax Act, 1961, by the 1 st Respondent is challenged on the limited ground that the same has been made without granting adequate/ reasonable opportunity to the petitioner.
The petitioner’s counsel argued that two notices dated 21.10.2020 and 24.12.2020 were issued, scheduling appearances and responses from the petitioner. However, the first notice was not served, and when the second notice was issued, due to the COVID-19 pandemic, the petitioner’s Chartered Accountant, a senior citizen, advised against travel. Medical reports corroborated this assertion, highlighting the conditions of the CA and the pandemic’s associated risks.
Based on these circumstances, the court deemed it necessary to grant the petitioner a fair opportunity to present objections before the assessing authority. The respondents, representing the Income Tax department, did not contest this request.
Consequently, the bench of Justice Mohammed Shaffiq remanded the matter back to the respondents, instructing them to redo the assessment while ensuring the petitioner receives a reasonable opportunity to participate. The respondents were given a deadline of 12 weeks from the receipt of the court’s order to complete the reassessment process in accordance with the law.
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