The two-member bench of the Himachal Pradesh High Court has set aside the demand for Income Tax amounting to Rs. 2.73 crores, as the company’s account properly reflects the transaction.”
The petitioner has challenged the order dated 13.04.2023 and the notice dated 13.04.2023, which concluded that income/transactions amounting to `2, 73, 28, 43,663/- had escaped assessment in the Assessment Year 2019-2020. The notice requires assessment/reassessment of such income within 30 days of its service.
The main grievance of the petitioner is that the details furnished along with the reply, indicating that the income/transactions shown in the notice have already been accounted for in the Books of Account of the Company, including the profit and loss account and Balance Sheet, have not been taken into consideration by the respondent authority. Furthermore, the supplementary reply filed on 03.04.2023 has also not been considered.
Mr.Vinay Kuthiala representing the respondent contended that reply of the assessee has been considered as reflected in the impugned order itself and, further that, supplementary reply stated to have been filed on 03.04.2023 has not been received by the concerned authority
The plea of the respondents that the supplementary reply filed by the petitioner on 03.04.2023 was not received by the concerned authority is contradicted by the document filed by the respondents themselves with their reply. In that document, at Sl. No. 13, it is clearly indicated that a reply from the assessee was filed on 03.04.2023.
It was apparently clear that concerned authority has neither considered reply filed along with documents nor supplementary reply filed on 03.04.2023 by the petitioner. There is no speaking order assigning reason for conclusion arrived at that income/transactions to the extent of `2, 73, 28, and 43,663/- has escaped assessment in the Assessment Year 2019-2020.
The division bench, consisting of Justice Vivek Singh Thakkur and Justice Sandeep Sharma, quashed and set aside the order dated 13.04.2023 and the notice dated 13.04.2023. The matter was remanded to the concerned authority for a fresh decision, with instructions to consider both the reply and supplementary reply along with accompanying documents. They are directed to issue a speaking and reasoned order after providing an opportunity for a personal hearing to the petitioner, if requested. The order shall be communicated to the petitioner immediately thereafter. Accordingly, Petition was disposed of.
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