Validity of return filed within CBDT-extended reassessment deadline led to setting aside ex parte assessment and remand.

A return filed on 31/05/2021 in response to reassessment notice was held valid because the CBDT circular extended the filing deadline to that date. The lower authorities had treated the return as non-est and proceeded on an ex parte basis, but that approach was incorrect once the extended time limit was applied. As the filing was within the permitted period, the return could not be rejected for delay. The assessment and appellate orders were set aside, and the matter was remanded for de novo assessment in accordance with law.

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Issues: Whether the return of income filed on 31/05/2021 in response to notice issued under reassessment proceedings could be treated as valid in view of the CBDT extension of time, and whether the assessment and appellate orders required interference.

Analysis: The return was filed in response to notice under reassessment proceedings on 31/05/2021. The CBDT circular extended the last date for filing such return up to 31/05/2021. The authorities below overlooked that extension and proceeded on the footing that the return was non-est and that the assessment could be completed ex parte. Since the filing was within the extended time, the return could not be rejected as invalid on the ground of delay.

Conclusion: The return dated 31/05/2021 is valid, the orders of the lower authorities are set aside, and the matter is remanded for de novo assessment in accordance with law, partly in favour of the assessee.

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