Writ Appeal Dismissed for Non-Cooperation in Income Tax Assessment

The Writ Appeal challenging the best of judgment assessment under Section 144 of the Income Tax Act was dismissed. The court found that despite receiving notices and draft orders, the appellant did not cooperate with the assessment proceedings. The Revenue provided evidence of serving the necessary notices via Registered Post, leading to the court upholding the best of judgment assessment. The appellant was granted liberty to appeal before the Commissioner of Income Tax (Appeals) within 30 days without rejection on the grounds of limitation. No costs were awarded, and the miscellaneous petition was closed.

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Issues:
Challenge to best of judgment assessment under Section 144 of the Income Tax Act, 1961 based on non-participation in assessment proceedings.

Analysis:
The appellant-assessee challenged the best of judgment assessment order dated 26.11.2019 under Section 144 of the Income Tax Act, 1961, contending that despite receiving notices, they did not participate in the assessment proceedings. The Single Bench dismissed the Writ Petition citing the appellant's non-cooperation. The Writ Appeal was heard to determine if the appellant was served with the necessary notices and draft order. The court emphasized the importance of proof of service under Section 142(1) of the Act to proceed under Section 144. The Revenue was directed to produce records to establish the service of notices.

The Revenue provided the original file and relevant documents, demonstrating that the notice dated 14.02.2018 under Section 142(1)(i) was sent via Registered Post and acknowledged by the assessee on 24.02.2018. Similarly, the hearing notice dated 20.05.2019 and the draft assessment order dated 16.09.2019 were also sent by Registered Post and duly received by the appellant. Despite receiving these notices, the appellant did not cooperate with the assessment proceedings. Consequently, the court found no error in the order passed by the Writ Court, upholding the best of judgment assessment.

In conclusion, the Writ Appeal was dismissed, and the appellant was granted liberty to file an appeal before the Commissioner of Income Tax (Appeals) within 30 days from the date of receipt of the judgment copy. The appellate authority was instructed to entertain the appeal without rejecting it on the grounds of limitation. No costs were awarded in this matter, and the connected miscellaneous petition was closed.

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