High Court quashes assessment order, grants petitioner extension due to pandemic impact.

The High Court set aside and quashed the assessment order due to the petitioner's inability to comply with notices during the pandemic. The petitioner was granted a further opportunity to file a return, emphasizing the impact of the pandemic on her ability to participate in the assessment process.

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Issues involved: Assessment order under section 147 read with section 144 and 144B in Income Tax Act, 1961 due to non-compliance with notices during the pandemic.

Summary:

Issue 1: Compliance with notices during the pandemic
The petitioner, an assessee, sought interference in the assessment order dated 21st March, 2022, as she could not comply with the notices issued due to the pandemic. The petitioner's advocate argued for setting aside the impugned order to allow for filing a return and participating in the assessment process. The Court noted the petitioner's claim of inability to respond to notices and granted the petitioner a further opportunity to file a return.

Issue 2: Assessment of taxable income
The petitioner, in her first assessment, had sold her property consisting of land and building. The Senior Standing Counsel for revenue confirmed compliance with provisions including section 144B and demonstrated that notices were duly issued to the assessee. Since the assessee had not filed a return or responded to the notices, the Court found no enquiry for allowing indexation. The assessment order was set aside, and the petitioner was directed to submit her return within two weeks for assessment purposes.

Conclusion:
The High Court set aside and quashed the impugned assessment order, granting the petitioner a further opportunity to file a return. The writ petition was disposed of, emphasizing the impact of the pandemic on the assessee's ability to respond to notices and participate in the assessment process.

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