High Court sets aside assessment order for failure to consider petitioner's circumstances and grants fresh assessment within specified timeframe.

The High Court set aside the assessment order due to the respondent's failure to consider the petitioner's circumstances and address the request for additional time to provide necessary documentation. The court remanded the matter for fresh consideration within six weeks, emphasizing the importance of a personal hearing and ensuring neutrality by assigning a different Assessing Officer for the reassessment process. The petition was disposed of with the decision to quash the impugned order and order a fresh assessment within the specified timeframe.

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Issues:
Challenge to assessment order based on natural justice and due process violation.

Analysis:
The petitioner, an individual, challenged an assessment order dated 20th September, 2021, contending that it violated principles of natural justice and due process. The petitioner, a senior citizen, had jointly purchased a flat with her son, with the son contributing a significant portion of the payment. The case was selected for scrutiny under Section 147 of the Income Tax Act, 1961, as the petitioner allegedly did not file her original return of income for the assessment year 2013-14. The petitioner received a show cause notice on 15th September, 2021, directing her to provide documents and explain the sources of property purchase. Despite providing a partial response due to difficulties in obtaining certain bank statements, the respondent passed the assessment order on 20th September, 2021, disregarding the petitioner's explanations.

The assessment order stated that the petitioner's reply was not tenable, as it lacked documentary evidence supporting the payment details for the property purchase. The respondent found the petitioner's submission to be a reiteration of earlier arguments without any new evidence. Notably, the respondent did not address the petitioner's request for additional time to obtain bank statements, which was crucial for substantiating the source of funds for the property investment. Consequently, the High Court set aside the impugned order dated 20th September, 2021, due to the lack of consideration for the petitioner's circumstances and the failure to address the request for additional time to provide necessary documentation.

Although the respondent was served with a copy of the petition, no reply was filed. During the court proceedings, Mr. Suresh Kumar, representing the respondent, acknowledged the validity of the documents annexed to the petition and suggested remanding the matter for denovo consideration without making any observations on the case's merits. The court agreed with this approach and quashed the impugned order, remanding the matter for fresh consideration within six weeks, emphasizing the importance of providing a personal hearing in accordance with the law. The court clarified that the assessment should not be conducted by the same Assessing Officer who passed the initial order, maintaining neutrality in the reassessment process. Ultimately, the petition was disposed of in light of the court's decision to set aside the assessment order and order a fresh assessment within the specified timeframe.

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