Court quashes assessment order, orders fresh assessment within 30 days

The court set aside the impugned assessment order under Section 143(3) of the Income Tax Act, finding it hastily passed and ignoring information provided by the petitioner, a Cooperative Bank. Despite delays, the court acknowledged the petitioner's efforts to comply before the order was finalized. The court ordered the impugned order to be quashed, remitting the case back to the respondent for a fresh assessment within thirty days, with a directive for a personal hearing and no extensions granted. The writ petition was allowed by remand, with no costs incurred.

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Issues:
Impugned assessment order under Section 143(3) of the Income Tax Act challenged by the petitioner.

Analysis:
The petitioner filed Income Tax Returns reporting significant transactions post-demonetization. Notices were issued under Sections 143(2) and 142(1) of the Income Tax Act, requesting documents and information. Despite reminders and deadlines, the petitioner failed to comply fully. The respondent proposed completing the assessment under Section 144 due to the petitioner's non-compliance.

The petitioner partially responded to the notices but failed to meet the deadlines set by the respondent. The petitioner uploaded required details on the official website before the impugned order was issued, showing an attempt to comply. The impugned order was passed hastily, ignoring the information provided by the petitioner.

The respondent argued that the petitioner's negligence led to missed deadlines, justifying the best judgment assessment under Section 144. The respondent contended that leniency was unwarranted, as the petitioner, a Cooperative Bank, should have provided the necessary details. The respondent suggested the petitioner pursue an alternative remedy before the Commissioner of Appeals.

The court considered both parties' arguments and noted the sequence of notices and reminders sent to the petitioner for assessment. Despite the petitioner's delays, the court acknowledged the effort made by the petitioner to provide the required information before the impugned order was finalized. The court found the hurried manner in which the impugned order was passed unsustainable and ordered it to be quashed.

Consequently, the court set aside the impugned order and remitted the case back to the respondent to issue a fresh order within thirty days, considering the petitioner's submissions. The court directed a personal hearing before the new order is passed and emphasized that no extensions would be granted. The writ petition was allowed by remand, with no costs incurred.

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