Income Tax Authority failed to give adequate Opportunity  to put forth submission: Calcutta HC quashes Assessment Order [Read Order]

In a recent ruling, the Calcutta High Court (HC) quashed the assessment order, as the Income Tax Authority failed to give adequate opportunity to put forth a submission.

Green Valliey Industries Limited, the petitioner challenged the order dated 22nd November 2022 in W.P.A. 23327 of 2022 which was filed challenging an assessment order dated 28th September 2022 under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (“the Act”). 

The Single Bench dismissed the writ petition on the ground that the appellant should avail the appellate remedy under the provisions of the Act.  The assessment had been completed by the officer with utmost haste without affording a reasonable opportunity for the appellant to put forth its contentions especially when the allegation was one of “mismatch”.

 A show cause notice was issued on 14th September 2022 at 6.31 p.m. and communicated to the appellant/assessee via email.  It was evident that the appellant/assessee has five days to respond but the time granted was only two days, as the three days have to be excluded as they are Saturday and Sunday and especially on 17th September 2022, which was an auspicious day when pujas were being celebrated through the State of West Bengal.

The assessee submitted an interim reply on 19th September 2022 specifically pointing out that the case is voluminous in nature, it requires sufficient time and the time granted was insufficient and it would be very difficult for it to submit an effective reply.  The assessing officer did not extend the time but proceeded to pass the impugned assessment order.

Justice T S Sivagnanam and Justice Hiranmay Bhattacharyya observed that there was nothing on record to indicate that the assessee was put on notice that the portal was kept open and it could do verification to reconcile any discrepancy. 

While allowing the appeal, the court set aside the order passed in the writ petition.  Further, the assessment order dated 28th September 2022 got set aside and the matter was remanded back to the assessing officer for fresh consideration.

Abhratosh Mazumder, senior counsel appeared for the appellant duly assisted by Mr Avra Mazumder and Ms Smita Das De, senior standing counsel appeared for the respondents.

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