AO shall not Proceed with Income Tax Assessment Proceedings within Four Weeks if AO Rejects Taxpayer's Objections: ITAT [Read Order]
The assessment order was framed within less than four weeks from the disposal of objections, which is contrary to the law laid down by the High Court, said the bench.
![AO shall not Proceed with Income Tax Assessment Proceedings within Four Weeks if AO Rejects Taxpayers Objections: ITAT [Read Order]](https://images.taxscan.in/h-upload/2025/09/09/2084930-itat-pune-ao-assessment-procedure.webp "AO shall not Proceed with Income Tax Assessment Proceedings within Four Weeks if AO Rejects Taxpayers Objections: ITAT [Read Order]")
The Pune Bench of the Income Tax Appellate Tribunal ( ITAT ) has quashed an assessment order framed within four weeks if the assessing officer rejected the assessee’s objections. The officer has to give a cooling period before passing the final order or further proceeding with the matter.
For the Assessment Year 2017-18, the assessee had filed a return of income declaring ₹24,29,600. Based on information regarding alleged cash deposits during the demonetisation period, the case was reopened by issuance of notice under Section 148.
Know the complete aspects of tax implications of succession, Click here
The assessee, Pramod Manikchand Dugad objected to the reopening vide letter dated 01.03.2022, which was disposed of by the Faceless Assessing Officer (FAO) on 08.03.2022. A subsequent objection was also disposed of on 16.03.2022.
However, the FAO proceeded to conclude the reassessment and frame the order on 24.03.2022, i.e., before the expiry of the mandatory four-week period.
The assessee argued that the assessment was bad in law as it contravened the Bombay High Court’s Asian Paints ruling, which held that if the Assessing Officer does not accept the assessee’s objections, he must wait for at least four weeks from the date of service of the objection disposal order before proceeding further.
However, the Departmental Representative defended the reassessment order but could not rebut the factual position.
After considering submissions, the bench of Vinay Bhamore and Manish Borad noted that the assessment order was framed within less than four weeks from the disposal of objections, which is contrary to the law laid down by the High Court.
Complete GST Act & Rules with amendments made by financial bill, 2025 - Click Here
The bench noted the Bombay High Court ruling which held that “if the Assessing Officer does not accept the objections so filed, he shall not proceed further in the matter within a period of four weeks from the date of receipt of service of the said order on objections, on the assessee. Accordingly rule is made absolute”.
The bench, following the precedent, held the reassessment proceedings to be unsustainable in law and accordingly quashed the assessment order. Since the order was invalidated on this legal ground, the tribunal found it unnecessary to examine the case on merits.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
