Court sets aside assessment order under Income Tax Act 1961 for 2010-2011 due to procedural flaws The court set aside the impugned assessment order under the Income Tax Act, 1961 for the assessment year 2010-2011 due to the Assessing Officer's failure ...
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Court sets aside assessment order under Income Tax Act 1961 for 2010-2011 due to procedural flaws
The court set aside the impugned assessment order under the Income Tax Act, 1961 for the assessment year 2010-2011 due to the Assessing Officer's failure to consider and decide on the objections raised by the petitioner before passing the order. The petitioner was not given a reasonable opportunity of hearing, violating principles of natural justice. The Assessing Officer was instructed to promptly address the objections and communicate a reasoned order to the petitioner. The Assessing Officer was allowed to proceed with the assessment if the proceedings were not dropped, with other contentions left open for determination by the appropriate forum. The writ petition was disposed of with no costs awarded.
Issues: Challenging assessment order under Income Tax Act, 1961 for assessment year 2010-2011 due to lack of opportunity for hearing and consideration of objections.
Analysis: The petitioner received a notice under Section 147 read with Section 148 of the Income Tax Act, 1961, proposing to reopen the assessment for the assessment year 2010-2011. The petitioner sought an adjournment for the hearing fixed on May 29, 2017, due to the transfer of the concerned officer. Despite filing objections on July 26, 2017, the impugned order dated July 31, 2017 did not address the objections raised. The Court held that the Assessing Officer should have considered and decided the objections before passing the assessment order. The petitioner was not afforded a reasonable opportunity of hearing, violating principles of natural justice. The impugned order was set aside, instructing the Assessing Officer to dispose of the objections expeditiously and communicate a reasoned order to the petitioner.
The Assessing Officer is directed to adhere to principles of natural justice while dealing with the objections and communicate the reasoned order promptly. The Assessing Officer is granted the liberty to proceed with the assessment under Sections 143(2) and 142(1) of the Income Tax Act, 1961, if the proceedings are not dropped. The rival contentions raised by the parties are left open to be decided before the appropriate forum. The writ petition is disposed of with no order as to costs.
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