Tax Assessment Order Quashed for Procedural Errors; Fresh Order to be Issued in Six Months Under Income Tax Act Protocol.

The HC set aside the Impugned Assessment Order dated 30.03.2022 due to procedural violations, specifically the failure to issue a Draft Assessment Order as required under Section 144B of the Income Tax Act, 1961. The case was remitted to the respondents to issue a fresh order within six months, treating the quashed order as a Draft Assessment Order/Show Cause Notice. The court instructed the respondents to ensure proper portal arrangements for the petitioner to respond and to adhere to the correct procedure under Section 144B. The writ petition was disposed of without costs, and related petitions were closed.

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Issues:
The issues involved in the judgment are the validity of the Impugned Assessment Order dated 30.03.2022, the reopening of assessment under Section 148 of the Income Tax Act, 1961 during the Covid-19 pandemic lockdown, the contention regarding notice delivery via web portal, the compliance with procedures under Section 144B of the Income Tax Act, 1961, and the necessity for a Draft Assessment Order.

Impugned Assessment Order Validity:
The petitioner challenged the Impugned Assessment Order dated 30.03.2022, which was issued after a notice under Section 148 of the Income Tax Act was sent during the Covid-19 lockdown period. The petitioner claimed not to have received the notice, while the Department argued that it was posted on a web portal for the petitioner to respond.

Compliance with Section 144B Procedure:
The judgment highlighted that the Impugned Order was passed to prevent the assessment from being time-barred under Section 153 of the Income Tax Act, 1961. However, it was noted that the procedure under Section 144B was not fully followed, as no Draft Assessment Order was issued by the Assessing Unit as required by law.

Remittal and Directions:
As a result of the procedural violations, the Impugned Order was set aside, and the case was remitted back to the respondents to pass a fresh order within six months. The quashed Impugned Order was to be treated as a Draft Assessment Order/Show Cause Notice for the petitioner to respond. The respondents were instructed to ensure proper arrangements in the portal for the petitioner to upload a reply and to follow the correct procedure under Section 144B of the Income Tax Act.

Disposition:
The writ petition was disposed of with the above directions, and no costs were awarded. Connected miscellaneous petitions were closed as a consequence of the judgment.

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