KOHINOOR INFRA DEVELOPMENT THR ITS PARTNERS vs. INCOME TAX OFFICER

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WP/6044/2021HC BombayHCBM01030797202128 September 2021Bench: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE SHRI JUSTICE R. I. CHAGLA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court quashed and set aside the assessment order dated 31st August 2021 and consequential actions. The matter was remanded for denovo consideration by the Assessing Officer. The Assessing Officer was directed to pass an order within six weeks from the date of the judgment, after providing a personal hearing to the Petitioner and considering the replies or documents already filed. The Court explicitly clarified that no observations were made on the merits of the case. The ratio of this decision is that an assessment order passed without affording a proper opportunity of hearing, especially when a genuine issue is acknowledged by the revenue, can be set aside and remanded for fresh consideration.

What were the facts?

The Petitioner, Kohinoor Infra Development, through its partners, filed a writ petition before the Bombay High Court challenging an assessment order dated 31st August 2021 passed by the Income Tax Officer. The Petitioner contended that they had requested a personal hearing through video conference scheduled for 27th August 2021, but it was not attended. The Petitioner's reasons for non-attendance were detailed in the petition. The Petitioner's prayer was limited to quashing the assessment order and remanding it for fresh consideration after granting a personal hearing, without contesting the merits of the assessment order at that stage. The Revenue, through its counsel, acknowledged a potential genuine problem.

What were the issues?

1. Whether the assessment order dated 31st August 2021 should be quashed and set aside on the grounds that the Petitioner was not afforded a proper personal hearing, as contemplated under the Income Tax Act, 1961. Assessee's Contention: The Petitioner argued that they were praying for the quashing of the assessment order and its remand for denovo consideration after being granted a personal hearing. They stated that they would raise all points during the personal hearing and were not contesting the merits or conclusions of the assessment order at that juncture. Revenue's Contention: The Revenue, through its counsel, conceded that there appeared to be a genuine problem and suggested that the court may set aside the order and remand it for fresh consideration.

AI-generated summary — verify with the full judgment below

1/2 904-wp-6044-21.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 6044 OF 2021 Kohinoor Infra Development through its partners

….Petitioner V/s. Income Tax Officer

…Respondent ---- Mr. A. Y. Sakhare, Senior Advocate a/w Mr. A.A.Garge i/b Mr. Kashyap S. Bhalerao for Petitioner Mr. Sham Walve for Respondent ---- CORAM : K.R. SHRIRAM & R. I. CHAGLA, JJ

DATED : 28th SEPTEMBER 2021 P.C. : 1 When the matter was called out during the morning session, Mr. Walve requested the matter be taken up in the post lunch session in order to take instructions. 2 Post lunch, Mr. Walve pointed out that in the assessment order dated 31st August 2021, it is mentioned in paragraph 7 that “the assessee had requested for a personal hearing through VC which was scheduled for 27th August 2021 however, it was not attended by the assessee”. Mr. Walve also points out that the reasons for petitioner not attending the personal hearing has been explained in paragraphs 5, 6, 9, 10 & 14 of the petition. Mr. Garge states that petitioner is only praying for quashing of the assessment order and remanding it for denovo consideration after petitioner is given a personal hearing and petitioner is not, for the moment, contesting the merits or the conclusions arrived at in the assessment order. Mr. Garge Meera Jadhav MEERA MAHESH JADHAV Digitally signed by MEERA MAHESH JADHAV Date: 2021.09.29 15:29:16 +0530

2/2 904-wp-6044-21.doc states petitioner will raise all the points during the personal hearing. 3 Mr. Walve as an officer of the court states that there appears to be a genuine problem and hence the court may set aside the order and remand it for fresh consideration. 4 In the circumstances, the assessment order dated 31st August 2021 impugned in this petition, is quashed and set aside and remanded for denovo consideration. Consequential actions pursuant to the assessment order being passed are also set aside. 5 Assessing Officer may pass such order as he deems fit within 6 weeks from today on the merits of the case after giving personal hearing to petitioner and also consider the replies or documents already filed by petitioner. We clarify we have not made any observations on the merits of the case. 6 Petition disposed. (R. I. CHAGLA J) (K.R. SHRIRAM, J.) Meera Jadhav

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