Court quashes assessment notice for AY 2010-11, finding petitioner had filed return; notice set aside

The Court quashed the notice to reopen the assessment for AY 2010-11 as the petitioner had indeed filed the return of income, contrary to the Assessing Officer's assertion. Despite the return being processed under section 143(1) of the Income Tax Act without scrutiny assessment, the Court found the reasons for the notice invalid. Consequently, the notice dated 30.03.2017 was set aside, and the petition was allowed and disposed of.

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Issues:
Challenge to notice for reopening assessment for AY 2010-11 based on failure to file return and alleged income escapement.

Analysis:
The petitioner challenged a notice issued by the Assessing Officer to reopen the assessment for the assessment year 2010-11. The reasons cited for issuing the notice were the non-filing of the return of income by the assessee and the receipt of a significant sum during the reference year. The petitioner contended that the basis for the notice was invalid as they had indeed filed the return, contrary to the assertion made by the Assessing Officer. The petitioner provided supporting evidence and averments to prove the filing of the return, which the respondent failed to refute. Consequently, the sole ground for issuing the notice was found to be incorrect.

The Court observed that the reasons provided by the Assessing Officer lacked validity, as it was established that the petitioner had filed the return of income despite the assertion in the notice. The Court, therefore, decided to quash the notice, even though the return filed by the petitioner had been processed under section 143(1) of the Income Tax Act, and no scrutiny assessment had been conducted. Consequently, the impugned notice dated 30.03.2017 was set aside, and the petition was allowed and disposed of.

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