Court sets aside flawed assessment order, directs fresh assessment considering rectification petition.

The court found the assessment order flawed for not considering the rectification petition filed by the petitioner, leading to a higher tax liability. The court set aside the order and remanded the matter for a fresh assessment, directing the respondent to consider the rectification petition and the petitioner's response. The writ petition was disposed of without costs, and pending applications were closed.

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Issues:
Assessment order validity challenged under Article 226 of the Constitution for assessment year 2018-19 due to discrepancies in return filing and rectification petition not considered.

Analysis:
The petitioner challenged the assessment order dated 17.03.2021 passed by the National e-Assessment Centre under Section 143(3) of the Income Tax Act, 1961 for the assessment year 2018-19. The assessed income was determined at a higher amount due to discrepancies in the return filing. The petitioner had mistakenly filled the wrong code and business nature in the return, which was later rectified through a Section 154 application. However, the assessment was completed without considering this rectification application, leading to a higher tax liability for the petitioner.

The petitioner contended that the assessment should have considered the rectification petition filed under Section 154 of the Act, which would have corrected the inadvertent mistake in the return filing. The failure to consider this rectification application caused prejudice to the petitioner. The respondent, on the other hand, claimed that there was no pending application under Section 154 and the petitioner had not mentioned it either.

After hearing both parties, the court held that the assessment order was flawed as it did not take into account the rectification petition filed by the petitioner. The court set aside the assessment order dated 17.03.2021 and remanded the matter back to the National e-Assessment Centre for a fresh assessment order. The court directed the respondent to consider the rectification petition filed by the petitioner and also take into account the response submitted by the petitioner in reply to the show cause notice and draft assessment order.

In conclusion, the court disposed of the writ petition by setting aside the assessment order and ordering a fresh assessment considering the rectification petition and petitioner's response. No costs were awarded, and any pending miscellaneous applications were closed.

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