Assessment order during stay violated interim order, deemed void. Court quashes order, remits for fresh consideration.

The High Court held that the assessment order passed during the pendency of a stay was in violation of the interim order and thus void. The court quashed the assessment order and related demands, remitting the matter back for fresh consideration by the Assistant Commissioner, directing the petitioner to appear for a new hearing.

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Issues: Violation of interim order in passing assessment order under Section 148 of the Income Tax Act, 1961

Analysis:
1. The petitioner challenged a notice dated 30.03.2017 issued by the Assistant Commissioner, Income Tax under Section 148 of the Income Tax Act, 1961.
2. A coordinate bench had previously stayed further proceedings under Section 147/148 while issuing notice in December 2017.
3. Despite the interim order, the assessment order was passed on 20.12.2017, during the pendency of the stay.
4. The petitioner raised concerns about the assessment order being passed during the stay period, highlighting the legal principle that any order passed during the operation of a stay is considered a nullity.
5. The High Court held that the assessment order passed on 20.12.2017 was in violation of the interim order dated 13.12.2017 and was therefore void.
6. Consequently, the court quashed the assessment order and any related demands, remitting the matter back to the Assistant Commissioner for fresh consideration.
7. The petitioner was directed to appear before the Assistant Commissioner on a specified date for a fresh hearing in light of the court's decision.

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