Assessment Order Quashed Due to Procedural Lapses After Karta's Death; Case to Be Reassessed Amid Faceless Scheme. The HC quashed the assessment order under the Income Tax Act, 1961, issued post-Karta's death, citing procedural lapses and the Covid-19 pandemic. The ...
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Assessment Order Quashed Due to Procedural Lapses After Karta's Death; Case to Be Reassessed Amid Faceless Scheme.
The HC quashed the assessment order under the Income Tax Act, 1961, issued post-Karta's death, citing procedural lapses and the Covid-19 pandemic. The case was remitted to the respondent for a fresh assessment in line with the faceless assessment scheme. The writ petition was disposed of without costs, closing related petitions.
Issues: Challenge to Assessment Order under Income Tax Act, 1961
Analysis: The petitioner challenged the Assessment order dated 29.09.2021 passed under Section 147 read with 144 of the Income Tax Act, 1961, resorting to best judgment under Section 144. The petitioner, a HUF, claimed that after the death of the main Karta, returns were filed for the Assessment year 2012-2013 but not for 2013-2014. The petitioner's wife filed independent returns for 2013-2014, declaring the HUF income for the last two months post the Karta's death. The petitioner alleged not receiving several notices preceding the impugned order, urging for one last chance.
The respondent argued that notices were sent to the designated email ID, though updated later, and the responsibility to file returns and respond to notices fell on the surviving coparcener post the Karta's death. As no returns were filed for 2013-2014, the impugned assessment was completed under Section 147 read with 144. The respondent highlighted the family's long-term presence at the address, indicating awareness of the communication. The Court considered various factors leading to the impugned order, including the Karta's death and the Covid-19 pandemic, and decided to quash the order, remitting the case back to the respondent for a fresh order on merits. The impugned order was to be treated as an addendum to the notices issued.
The Court directed the respondent to complete the assessment in accordance with the faceless assessment scheme. The writ petition was disposed of without costs, and connected writ miscellaneous petitions were closed.
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