Assessment order quashed under lack of representation opportunity for assessment year 2015-16

The court quashed the assessment order passed under Section 144B read with Section 263 for the assessment year 2015-16 due to the lack of adequate opportunity for representation. The matter was remitted to the Assessing Officer, with directions to provide the petitioner with a chance to be heard based on the submissions made on 28.09.2021. The petition was allowed in favor of the petitioner.

---

---

Issues Involved:
1. Adequate Opportunity for Representation
2. Compliance with Section 144B of the Income Tax Act
3. Principles of Natural Justice

Summary:

Issue 1: Adequate Opportunity for Representation
The petitioner challenged the assessment order passed under Section 144 read with Section 263 and Section 144B of the Income Tax Act for the assessment year 2015-16, arguing that the respondents did not provide a reasonable opportunity to respond. Notices were issued on 08.09.2021 and 21.09.2021 to an old authorized representative, and a show-cause notice was issued on 28.09.2021, requiring compliance by 29.09.2021. Despite filing a response on 28.09.2021, the assessment was completed ex-parte on 30.09.2021 without considering the objections.

Issue 2: Compliance with Section 144B of the Income Tax Act
Mr. Hardik Vora, representing the petitioner, argued that the assessment order violated Section 144B, which mandates that assessments should be completed only after considering the response furnished by the assessee. The petitioner cited several judicial decisions supporting the need for adequate opportunity and compliance with Section 144B.

Issue 3: Principles of Natural Justice
The court observed that the respondents failed to provide a reasonable opportunity for the petitioner to respond, especially given the faceless nature of the assessment. The court noted that the schedule worked out by the respondents deprived the petitioner of a fair chance to present their case, thus violating the principles of natural justice.

Conclusion:
The court quashed the assessment order passed under Section 144B read with Section 263 for the assessment year 2015-16 and remitted the matter to the Assessing Officer. The court directed that the petitioner should be given an opportunity to be heard in light of the detailed submissions made on 28.09.2021. The petition was accordingly allowed.

---