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2019 (6) TMI 405 - HC - Income TaxWrit against assessment order - non consideration of belated defective and revised return - grievance of the petitioner that the respondent without providing sufficient opportunity of hearing had proceeded to pass the impugned assessment order u/s 143(3) sans considering the return and the revised return vis-à-vis the claims made towards deduction/exemption u/ss 48 and 54F - HELD THAT:- Ordinarily, this Court would have relegated the petitioner-assessee to avail the statutory remedy of appeal available under the Act provided the principles of natural justice are adhered to. As could be seen from the order impugned, the respondent has not whispered about the revised return filed by the assessee except observing that the returns filed by the assessee were invalidated being defective returns. If that being the position, no opportunity was provided to the petitioner u/s 139(9) to remove the defects in the returns pointed out by the Assessing Officer nor an opportunity was provided to file a return pursuant to the notice issued u/s 142(1]). Even assuming that the arguments of the learned counsel for the Revenue that no revised returns could be accepted enlarging the claim of deduction/exemption beyond the time prescribed under the Act, it is sine-qua-non for the Assessing Officer to consider the claims of deduction/exemption made by the petitioner-assessee and thereafter to return the said claims if the assessee is not entitled to the same by assigning the reasons. The impugned assessment order prima-facie establishes that the deduction claimed u/s 54F is not considered while computing the taxable turnover. This would certainly indicates the non-application of mind by the respondent. Recording of “reasons” is sine-qua-non for arriving at a conclusion by the quasi-judicial authority and it is essential to adopt, to sub-serve the purposes of justice delivery system. The reasons are the soul and heartbeat of the orders without which the order is lifeless and void. Where the reasons are not recorded in the orders it would be difficult for the Courts to ascertain the minds of the authorities while exercising the power of judicial review. It is well settled legal principle that there is no bar to invoke the writ jurisdiction against a palpable illegal order passed by the Assessing Authority in contravention of the principles of audi alteram partem. On this ground alone, the order impugned cannot be approved. There is no cavil with the arguments of respondent placing reliance on the judgment of Goetze [India] Ltd. [2006 (3) TMI 75 - SUPREME COURT] that no claim for deduction otherwise than, by filing a revised return can be considered but not in the absence of Assessing Officer analyzing, adjudicating and arriving at a decision by recording the reasons. It is apparent that no reasons are forthcoming for rejecting the revised returns as well as the claims made u/s 54F. Such a perfunctory order passed by the assessing officer cannot be held to be justifiable. Hence, for the a foregoing reasons, without expressing any opinion on the merits or demerits of the case, demand notice issued u/s 156 as well as the recovery notice issued by the respondent are quashed.
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