Court sets aside Assessment Order, directs response within 3 weeks, reasoned order within 4 weeks. No comment on merits.

The Court set aside the Assessment Order dated 31st March, 2022, finding the time given to respond to the notice inadequate. The petitioner was directed to respond to the show cause notice within three weeks, and the respondent was instructed to pass a reasoned assessment order within four weeks thereafter. The Court clarified that it did not comment on the merits of the dispute, leaving the rights and contentions of all parties open for further proceedings.

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Issues:
Challenging Assessment Order under Income Tax Act for AY 2020-21.

Analysis:
1. The writ petition challenged the Assessment Order dated 31st March, 2022, under Section 143(3) read with Section 153A of the Income Tax Act, 1961 for the Assessment Year 2020-21.

2. The petitioner contested the additions totaling to Rs. 100,89,12,380 made by respondent No.1 due to the failure to reply to a show cause notice issued on 22nd March, 2022, which was served via email with a short response deadline.

3. The petitioner argued that the show cause notice, comprising 92 pages, requested documents for the first time during the assessment proceedings, which were not previously asked for in four earlier notices under Section 142(1) that were duly responded to.

4. The Revenue's counsel contended that adequate opportunities were provided to respond to the notices issued, with the last notice sent due to the petitioner's inadequate responses to prior notices under Section 142(1).

5. Despite receiving the notice on 22nd March, 2022, the petitioner neither replied nor requested additional time according to the Revenue's counsel.

6. The petitioner's counsel stated that the petitioner's representatives visited the respondent's office seeking more time to respond to the notice but were not accommodated.

7. Disputing the petitioner's claim, the Revenue's counsel contested the petitioner's version of events.

8. The Court found the time given to respond to the notice inadequate, considering its length and the accompanying depositions not previously provided to the petitioner, leading to setting aside the assessment order dated 31st March, 2022.

9. Consequently, the petitioner was directed to respond to the show cause notice within three weeks, and the respondent was instructed to pass a reasoned assessment order within four weeks thereafter, maintaining the legal requirements.

10. The writ petition and pending application were disposed of, clarifying that the Court did not comment on the merits of the dispute, leaving the rights and contentions of all parties open for further proceedings.

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