Reply to Notice couldn’t file due to Glitches on Income Tax Portal: Calcutta HC orders for Fresh Assessment [Read Order]

In an assessee-friendly ruling, the Calcutta High Court has asked the Assessing Officer to conduct fresh assessment proceedings since the assessee could not file the reply to notice due to technical glitches on the income tax portal.

The petitioner, Bhadrish Jayantilal Sheth, has challenged the impugned assessment order dated 30th March, 2022 under Section 147 read with Section 144B of the Income Tax Act, 1961 relating to assessment year 2013-2014 on the ground of violation of principle of natural justice by not providing the petitioner an opportunity to file reply to the show-cause notice.

The petitioner contended that the petitioner was asked to give his reply/show-cause-notice to the proposed draft assessment through Department’s Register e-filing account on the ground that before expiry of such time granted to file such reply/objection to the aforesaid show cause-notice/draft assessment, the respondent/Assessing Officer passed the impugned assessment order.  The petitioner further contended that the petitioner could not file reply or objection to the aforesaid show-cause-notice due to technical glitches in the portal of the Department.

Justice Md. Nizamuddin observed that “the impugned assessment order dated 30th March, 2022, which has been passed before the expiry of the time granted by the Assessing Officer to the petitioner to file reply to the aforesasid showcause-notice relating to the draft assessment in question and further in view of the technical glitches in the portal of the Department by which petitioner could not file his aforesaid objection, the impugned assessment order is not sustainable in law and the same is set aside and the case is remanded back to the Assessing Officer concerned to pass a fresh assessment order in accordance with law after giving an opportunity to the petitioner to file reply to the aforesaid show-cause-notice dated 29th March, 2022, which shall be filed by the petitioner within seven days from date and shall pass a reasoned and speaking order and by observing principle of natural justice.”

To Read the full text of the Order CLICK HERE

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