TMI Blog2024 (1) TMI 1195X X X X Extracts X X X X X X X X Extracts X X X X ..... treating him for the purpose of tax. It hardly stood to reason that the department refused the request of the assessee for grant of time to file his response to the draft assessment order. There was sufficient time available for the final assessment to be made. As it was pandemic time when the department should have adopted liberal approach in refusing the request for time for filing objection to the draft assessment order and finally passing the assessment order. The department acted thick skinned.Thus petitioner deserves to be granted a relief. The assessment order dated under Section 143(3) read with Section 144B are hereby set aside. In view of the above dictum of law in the aforesaid case, the petition is required to be allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition, with the consent of learned advocates appearing for the respective parties, the matter is taken up for final hearing today. 4. Brief fact of the case are as under: 4.1 The petitioner was engaged in manufacturing and trading of edible-Nonedible oil, Vanaspati De-oiled cake and trading of Agro Commodities, Seeds etc. The petitioner filed return of income on 28.11.2018 for the year under consideration declaring total income at Rs. 92,76,12,220/-. 4.2 The return was assessed under section 143(3) of the Income Tax Act, 1961 [for short the Act ] on 21.05.2011. The case was selected for scrutiny of assessment under section 143(3) and a draft assessment order determining the total income of the petitioner at Rs. 163,34,42,400/- w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the reply sent by the assessee. It appears that the assessee responded to the aforesaid notice as well as the reminder by stating inter-alia that certain new grounds were raised by the Revenue in respect of the investment in the mutual fund. 3.3. On 16.05.2021, the Department passed draft assessment order. In the draft assessment order, the Department dealt with the income from business, the interest income part and additions under Section 68 of the Act relating to the loan transaction. It appears that the assessee wanted to respond to the draft assessment order by filing reply. 3.4. On 22.05.2021, a request was made for granting fifteen days time with reference to the show-cause notice which was issued pursuant to the draf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requirement. 5.1. It could not be said, nor it is the case of the Department, that the right of the assessee to reply and put forth his case and the objections, if any, at the stage of draft assessment order before it culminates into the final assessment order under Section 143(3) read with Section 144B of the Act, was not the statutory providence. When statute provides for opportunity of hearing and the same is not complied with and breached, it could be said to have operated prejudicial to the assesee, without anything requiring further. 5.2. While the above aspect by itself clinches the relief for the assessee, there is an additional weighty aspect. The request for time to respond the draft assessment order, when made on 22.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Furthermore, it was pandemic time when the department should have adopted liberal approach in refusing the request for time for filing objection to the draft assessment order and finally passing the assessment order. The department acted thick skinned. 6. For the above reasons, the petitioner deserves to be granted a relief. The assessment order dated under Section 143(3) read with Section 144B of the Act as well as the notice dated 27.05.2021 under Section 274 read with Section 270A of the Act are hereby set aside. 6.1. The assessment proceedings are remanded to the Assessing Officer to be taken up afresh from the stage of the draft assessment order. The Assessing Officer shall pass appropriate order after giving opportuni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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