Assessment order under Section 144 and 143(3A) set aside due to bonafide reasons for non-appearance

Karnataka HC set aside an assessment order under Section 144 read with Section 143(3A) after finding that the petitioner's failure to respond to show cause notices and appear before authorities was due to bonafide reasons and unavoidable circumstances. The court adopted a justice-oriented approach, providing one final opportunity to the petitioner by remitting the matter back to the National Faceless Assessment Centre for fresh reconsideration in accordance with law, without expressing any opinion on the merits of rival contentions.

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Issues involved:
The petition seeks relief in the form of a Writ of Certiorari to quash various orders and notices related to assessment and penalties under the Income Tax Act 1961.

Assessment Order Challenge:
The petitioner, a Primary Agricultural Credit Co-operative Society, challenged the Assessment Order dated 31.03.2021 for the assessment year 2018-19. The petitioner cited genuine lapses in attending proceedings due to unfamiliarity with online procedures and a delay in providing necessary details to contest the assessment. The respondent determined unexplained cash credit and made additions to the declared income, leading to a substantial total income discrepancy. The petitioner, after consulting a new professional, filed a statutory appeal on 08/11/2021.

Legal Arguments:
The petitioner relied on judgments by the Hon'ble Apex Court to support their case. The respondents contended that despite opportunities, the petitioner did not respond to the Show Cause Notice, justifying the impugned order. The court considered the submissions and material on record.

Judgment:
After careful consideration, the court found the petitioner's reasons for non-compliance valid and sufficient. In a justice-oriented approach, the court set aside the impugned order and remitted the matter back to the respondent for reconsideration. The court granted the petitioner another opportunity to respond and directed the respondent to proceed in accordance with the law upon receiving the petitioner's submission.

Conclusion:
The court allowed the petition, setting aside the impugned order and remitting the matter for fresh consideration. The respondent was directed to issue a notice to the petitioner for further proceedings in compliance with the law, emphasizing the importance of the petitioner's timely response within fifteen days.

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