2024 (7) TMI 149 - HC - Income Tax

Extension Granted for Tax Assessment Deadline Amid Complex Documentation Concerns; Physical Verification Allowed.

The Bombay HC granted an interim application for an extension of time until 30 June 2024 for the revenue to complete assessment proceedings in an income ... Revenue Seeking extension of time for a further period of six months to comply with the directions of this Court 's order [2024 (1) TMI 1296 - BOMBAY HIGH COURT] - order passed by a co-ordinate Bench of this Court, whereby, directions were issued, enabling the petitioner to file detail objections to the notice issued u/s 148 of the Income Tax Act, 1961 and as set out in paragraph six of the said order - AO was to pass a reasoned order to dispose of the objections in accordance with law HELD THAT:- Assessee would not have any objection for extension of time in terms of what has been prayed for in prayer clause (A), however, in relation to the directions as made in paragraph seven of the order passed by the Court on the Writ Petition. We are also informed that insofar as compliance of paragraph six of the orders dated 23 January 2024 passed by the Court are concerned, the same stands complied as the objections were decided by the revenue by an order passed on 8 June 2024, which was however passed beyond the period as directed by this Court that the same were required to be decided prior to 30 April 2024. What remains to be complied are the further directions of the Court in paragraph seven of the said order passed by this Court, namely, that after the order disposing of objections filed by the petitioner having being passed, and the objections of the assessee being not accepted the Assessing Officer would be required to complete the assessment proceedings on or before 30 June 2024 as per law. The present application was filed on 24 June 2024, it is certainly filed prior to the timelines as set out in paragraph seven of the order, which would expire on 30 June 2024. First step to be undertaken by the Assessing Officer was to consider the objections as raised by the petitioner which was to culminate in taking the second step of completion of reassessment proceedings on or before 30 June 2024, which is now being undertaken by the Assessing Officer. If this be so, considering the facts that there are voluminous documents which would be required to be considered, in our opinion, in the facts and circumstances of the case the prayers as made by the petitioner are required to be granted. Thus grant interim application as Hon’ble High Court be please to extend the time for further 6 months from 30.06.2024 to comply with the order. Issues:Extension of time for compliance with court directions in an income tax case.Analysis:The High Court of Bombay heard an interim application for an extension of time filed by the revenue to comply with court directions issued in an income tax case. The original order dated 23 January 2024 directed the Assessing Officer to dispose of objections raised by the petitioner by 30 April 2024. However, the objections were decided on 8 June 2024, beyond the specified deadline. The court was now considering a further extension of time until 30 June 2024 for the completion of assessment proceedings. The Assessing Officer was required to consider objections first and then complete the reassessment proceedings. The court noted the voluminous documents involved and deemed the extension necessary for the assessment process.The court granted the interim application for an extension of time until 30 June 2024 as requested by the revenue. The court emphasized that the first step of considering objections needed to be completed before the assessment proceedings could be finalized. Given the complexity of the case and the volume of documents to be reviewed, the court found it appropriate to grant the extension. All contentions of the parties were kept open for further consideration.Additionally, the court addressed an application filed by the petitioner requesting physical verification of documents and books of account due to difficulties in uploading voluminous documents under the faceless assessment procedure. The court permitted the Assessing Officer to consider the application and make a decision within two weeks, communicating the outcome to the petitioner. The application was allowed in these terms, and no costs were imposed on either party.