Assessment order under s.143(3) read with s.144B set aside for denying time to file objections; remanded

High Court set aside the final assessment order passed under s.143(3) read with s.144B and allowed the petition after finding the assessing authority disregarded the assessee's reasonable request for time to file objections to the draft assessment order. Court held authorities must adopt a congenial, liberal procedural approach (especially during the pandemic) and remanded the matter to the Assessing Officer to proceed afresh from the stage of the draft assessment order.

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Issues involved:
The petition under Article 226 of the Constitution of India seeks to quash and set aside the Assessment Order and demand notice for the Assessment Year 2018-19. The petitioner also requests a stay on the implementation of the Assessment Order, along with any other relief deemed just and proper.

Details of the Judgment:

Issue 1: Assessment Proceedings
The petitioner, engaged in manufacturing and trading, filed a return of income for the year declaring total income. The return was assessed under section 143(3) of the Income Tax Act, and a draft assessment order was sent to the petitioner. Due to the Covid-19 pandemic, the final assessment order was passed without the petitioner's response, leading to the present petition.

Issue 2: Breach of Natural Justice
The petitioner argued that the assessment proceedings violated natural justice principles, citing a previous case where the court set aside an assessment order due to a similar breach. The court agreed that the right of the assessee to reply and present objections before the final assessment order was a statutory requirement, which was not fulfilled in this case.

Issue 3: Remedy and Directions
In light of the breach of natural justice, the court allowed the petition, quashing the impugned order and notice. The matter was remanded back to the Assessing Officer to decide afresh from the stage of the draft assessment order, ensuring the petitioner is given an opportunity to file a reply. The Assessing Officer was directed to complete the assessment proceedings within twelve weeks from the date of receipt of the order.

Conclusion:
The petition was allowed, and the notice and impugned order were quashed without delving into the merits of the case. The Assessing Officer was instructed to reevaluate the matter, providing the petitioner with an opportunity to respond within a specified timeframe. The petition was disposed of accordingly, with the rule made absolute in favor of the petitioner.

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