Tax Assessment Challenge Overturned: Procedural Errors Found, Fresh Hearing Ordered with Partial Recovery Withdrawal

HC allowed petitioner's challenge to tax assessment orders for 2018-19. Court quashed impugned orders, remitted case for fresh proceedings, and directed respondents to provide opportunity for hearing. Partial recovery of Rs. 1,84,947/- was noted, with instructions to withdraw bank account attachment and allow petitioner 30 days to respond to show cause notice.

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Issues involved:
Challenging assessment orders for the assessment year 2018-19 and restraining payment by Ford India Private Limited.

Analysis:
In this case, the petitioner challenged the assessment order dated 18.05.2022 for the assessment year 2018-19 and an order dated 18.05.2024 restraining Ford India Private Limited from making a payment of Rs. 6,58,181/-. The petitioner claimed to be unaware of the impugned orders until receiving a communication from the Bank regarding recovery of tax arrears. The petitioner argued that they were unaware of the preceding notices and the impugned orders until the bank communication. The petitioner sought a fair chance to succeed and requested an opportunity. The court, after considering submissions from both parties, granted partial relief to the petitioner by setting aside the impugned orders. An amount of Rs. 1,84,947/- had already been recovered from the petitioner's account towards tax liability. The court quashed the impugned orders and remitted the cases back to the respective respondent for a fresh order on merits. The impugned orders were to be treated as an addendum to the earlier show cause notice, and the petitioner was directed to reply to the notice within 30 days. The respondents were instructed to withdraw instructions attaching the bank account and recover the specified amount from the petitioner's account or through cash payment within 30 days if not available in the account. The writ petitions were allowed with no costs, and connected Miscellaneous Petitions were closed.

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