Petitioner's Objections Acknowledged in Assessment Orders under Income Tax Act

The High Court emphasized the importance of considering objections raised by the petitioner before passing assessment orders under Section 153 C of the Income Tax Act, 1961, citing violations of natural justice when objections were not addressed. The Court set aside assessment orders and remanded the case for proper consideration, granting the petitioner an opportunity to respond and file additional objections if permitted by law. The petition was ultimately disposed of after the objections were addressed, with the petitioner allowed to reply to the final show cause notice and granted extensions for response and communication methods.

---

---

Issues:
1. Challenge to action of respondent authority under Article 226 of the Constitution of India.
2. Issuance of notices under Section 153 C of the Income Tax Act, 1961.
3. Consideration of objections raised by the petitioner before further proceedings.
4. Compliance with principles of natural justice in assessment proceedings.
5. Availability of alternative remedy before approaching the writ Court.

Analysis:

1. The petitioner challenged the respondent authority's action under Article 226 of the Constitution of India regarding the issuance of notices under Section 153 C of the Income Tax Act, 1961. The petitioner requested the Court to direct the respondent to consider objections raised before proceeding further, citing the decision in Commissioner of Income Tax vs. Vijaybhai N. Chandrani.

2. The High Court referred to the case of Bajrang Tea Manufacturing Company Private Limited & Anr. vs. Union of India & Ors, which emphasized the importance of considering objections/representations before passing assessment orders under Section 153 C. The Court highlighted the violation of principles of natural justice when objections were not considered, setting aside assessment orders and remanding the case for proper consideration.

3. The Court stressed that when proceedings are initiated against a person other than the searched individual, objections to the satisfaction note must be allowed, and the Assessing Authority should provide a reasonable opportunity to respond. The Court cited the Vijaybhai N. Chandrani case, where a 15-day period was granted for filing objections before directing the Assessee to file a return.

4. The petitioner's objections were disposed of subsequent to filing the petition, rendering the main prayer moot as the authority had considered the objections. The petitioner was allowed to raise additional issues on merit if permitted by law, but the petition was disposed of due to the objections being addressed.

5. The Court permitted the petitioner to reply to the final show cause notice issued after the objections were disposed of, granting a minimum one-week extension to respond. Direct service through speed post and e-mode was permitted for communication, and the petitioner was allowed an adjournment before the Assessing Officer considering the circumstances.

This detailed analysis of the judgment outlines the issues involved, the court's considerations, and the final disposition of the petition, ensuring a comprehensive understanding of the legal proceedings and decisions made by the High Court.

---