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2024 (4) TMI 602 - HC - Income Tax


Issues involved: Impugning assessment order and demand notice u/s 148 of the Income Tax Act, 1961 for non-filing of returns for the assessment year 2014-15.

Summary:

Petitioner's Contentions:
The petitioner, a partnership firm engaged in logistics services, could not file income tax returns for the assessment year 2014-15 due to Covid-19 restrictions. Despite notices issued under Section 148 and 142(1) of the Act, the petitioner was unable to respond or provide necessary documents. An ex-parte assessment order was passed without adequate opportunity to represent the case, leading to the issuance of a demand notice. The petitioner sought to quash the assessment order and demand notice to submit the returns upon being granted a reasonable opportunity.

Respondents' Arguments:
The respondents contended that the petitioner failed to submit returns despite multiple notices and opportunities provided under Sections 142(2) and 143(1) of the Act. Notices were duly served, including the show-cause notice under Section 144, which warned of assessment completion if no response was received. The assessment order revealed an escape from assessment under Section 147, with notices issued and served on the petitioner without any compliance.

Court's Decision:
The court noted the petitioner's claims of non-service of notices but rejected them based on the assessment order's specific mention of notice service. Despite the petitioner's arguments of lack of opportunity and the impact of Covid-19, the court found no merit in granting relief. However, to ensure fairness, the court quashed the assessment order and demand notice to afford the petitioner another opportunity to be heard. The writ petition was allowed, directing the petitioner to file income tax returns within 30 days and cooperate with the authorities in compliance with the Act.

 

 

 

 

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