Assessment order quashed for 2011-12 due to assessing officer's error. Assessee's cross objection allowed.

The Tribunal quashed the assessment order for the year 2011-12, deeming it vitiated due to the assessing officer's failure to dispose of objections before completing the assessment. Consequently, the cross objection filed by the assessee was allowed, and the revenue's appeal was dismissed. The Tribunal's decision aligned with the High Court's precedent, leading to the assessment order being set aside on 24th September 2021.

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Issues:
Validity of assessment order challenged by the assessee regarding reopening of assessment for assessment year 2011-12.

Detailed Analysis:

Issue 1: Delayed Cross Objection
The assessee filed a cross objection challenging the validity of the assessment order, which was delayed by 489 days. The delay was condoned by the Tribunal after considering the reasons provided by the assessee's representative.

Issue 2: Validity of Reopening of Assessment
The assessing officer reopened the assessment for the year 2011-12 after a survey operation revealed undisclosed investments by the assessee in a hotel project. The assessee challenged the validity of the reopening before the Ld. CIT(A) on various grounds, including non-compliance with legal procedures. The Ld. CIT(A) upheld the assessing officer's actions, stating that the reopening was justified based on undisclosed income. However, the assessee contended that the assessing officer did not follow the procedure laid down by the Supreme Court, leading to a vitiated assessment order.

Issue 3: Non-Compliance with Legal Procedures
The assessee argued that the assessing officer did not follow the prescribed procedure by not disposing of objections raised by the assessee before completing the assessment. The Ld. A.R. cited relevant case laws and contended that this procedural irregularity rendered the assessment order void. The Ld. D.R. argued that such non-compliance would not invalidate the assessment order and could be rectified by remitting the matter to the authority.

Judgment
The Tribunal considered the arguments presented by both parties and referred to decisions by the jurisdictional High Court and a coordinate bench. Following the precedent set by the High Court, the Tribunal held that the failure to dispose of objections before completing the assessment violated the prescribed procedure. Consequently, the assessment order was deemed vitiated and was quashed. As a result, the cross objection filed by the assessee was allowed, and the appeal of the revenue was dismissed. The Tribunal pronounced the order on 24th September 2021.

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