2024 (2) TMI 49

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....sment orders both dated 30.03.2022 passed by the first respondent for the assessment years 2014-15 and 2015-16 respectively under Section 147 read with section 144B of the Income Tax Act, 1961 and a common notice issued under Section 221 (1) of the Income Tax Act, 1961 seeking to impose penalty pursuant to the above mentioned impugned assessment orders dated 30.03.2022 passed by the first respondent for assessment years 2014-15 and 2015-16 respectively and assessment year 2008-2009. 3. The challenge to the impugned orders dated 30.03.2022 under Section 147 read with section 144B and the impugned notice dated 04.07.2022 under Section 221 (1) of the Income Tax Act, 1961 are on account of violation of principles of natural justice. 4. As....

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.... as mentioned above. 9. It is submitted that the second respondent issued notices under Section 148 of the Income Tax Act, 1961 on 30.03.2021 and proposed to re-open the assessment alleging escapement of income chargeable to tax for the aforesaid respective assessment years requiring the petitioner to file a return in the prescribed form. The petitioner responded to the same by a letter dated 19.04.2021 and called upon the second respondent to furnish the reason for reopening the assessment before proceeding to file a return as is contemplated under Section 148(1) of the Income Tax Act, 1961. 10. It is the case of the petitioner that the petitioner was not a tech savvy person and therefore, was unable to upload the return electronical....

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....has also enclosed the details of returns filed on 29.04.2021 with the ASK Counter of the Income Tax Department duly acknowledged in Form ITR V. 16. The first respondent thereafter issued Show Cause Notices dated 26.03.2022 along with the Draft Assessment Orders under section 147 read with Section 144B of the Income Tax Act, 1961 soliciting the response of the petitioner by 28.03.2022. It is submitted that since the next day being Sunday viz., 27.03.2022 and the petitioner had difficulties therefore the petitioner could not reply earlier due to after effects of covid and was under supervision of a physician. It is submitted that the petitioner could not immediately reply and respond to the Show Cause Notices cum Draft Assessment Orders wi....

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.... v. Assistant CIT vs. Geno Pharmaceuticals Limited, MANU/MH/1996/2013; vi. P.T.Lee Chengalvaraya Naicker Trust vs. The Income Tax Officer, National Faceless Assessment Centre and Others, MANU/TN/7512/2022. 20. Defending the Impugned Assessment Orders, the learned Standing Counsel for the Income Tax Department would submit that as per section 139D of the Income Tax Act, 1961, Central Government is authorized to frame rules regarding filing of the returns and it is in this context Rule 12(3)(iii) of the Income Tax Rules, 1962, has been framed. 21. It is submitted that since the petitioner failed to file the returns electronically as is required under Rule 12(3)(iii) of the Income Tax Rules, 1962, read with Section 139D o....

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.... 26. The impugned orders passed on 30.03.2022 by the first respondent have preceded with the notices issued by the first and the second respondents and show cause notices cum Draft Assessment Orders dated 26.03.2022. It is evident that the assessment orders have been passed in a hurry to avoid lapsing of the assessment proceeding due to limitation under Section 153 of the Income Tax Act, 1961. 27. Although the respondents have given various reasons to justify the impugned order and submit that the petitioner should be relegated to work out the remedy before the Appellate Commissioner against the impugned assessment orders dated 30.03.2022, I am of the view that this is a manifest violation of principles of natural justice and therefore....