Considering the assessing officer hastily completed the assessment without considering the written submission of the taxpayer, Madras HC set aside the order

In a recent ruling, the Madras High Court set aside the Income Tax assessment order which was passed hastily without considering the taxpayer’s submission amidst the approaching deadline. SKM Animal Feeds and Foods (India) Private Limited, the petitioner challenged an assessment order dated 30.09.2021 passed by the Assistant Commissioner of Income Tax for the Assessment Year 2018-2019. Get a Copy of Income Tax Rules with FREE e-book access, Click here Initially, the process of assessment was handled by the National e-Assessment Centre, New Delhi, under the Faceless Assessment Scheme, but was later transferred to the jurisdictional officer in Erode, and a series of notices were issued to the petitioner under Section 142(1) of the Income Tax Act, 1961. The petitioner received a show-cause notice from the assessing officer at 22:50 (10.50 PM) hours on 27.09.2021, asking for a response by 29.09.2021. The petitioner compiled but contested that the final assessment order, dated 30.09.2021, was sent via email only on 01.10.2021, making it time-barred. Get a Copy of Income Tax Rules with FREE e-book access, Click here The petitioner filed a writ petition before the Madras High Court where the petitioner’s counsel argued that the order was passed after the expiration of the limitation period, as it was sent via email on 01.10.2021. The petitioner’s counsel submitted that the assessment was hurried and completed without considering the explanation submitted on 29.09.2021. The petitioner’s counsel further submitted that the assessment order violated the circular issued by the Central Board of Direct Taxes (CBDT) on 06.09.2021, which outlined specific procedures, including the involvement of the range head under Section 144A of the Income Tax Act. Get a Copy of Income Tax Rules with FREE e-book access, Click here On the contrary, the respondent’s counsel claimed that the assessment order was valid and argued that it was passed on 30.09.2021, even though it was communicated later and the petitioner had an alternate remedy under Section 246A of the Income Tax Act to challenge the order before the Appellate Commissioner. Justice C. Saravanan heard arguments from both sides and observed that prima facie, the assessment order was passed after 30.09.2021 which was beyond the time limit. The court acknowledged that the assessment was completed hurriedly due to the approaching limitation deadline, which might have affected the quality of the assessment process. Get a Copy of Income Tax Rules with FREE e-book access, Click here The court noted that the explanation submitted by the petitioner on 29.09.2021 was not adequately considered in the assessment order. Therefore, the court set aside the impugned assessment order dated 30.09.2021 and directed the assessing officer to pass a new assessment order within six months, following due process and allowing the petitioner to present its case. Thus, the petitioner’s writ petition was disposed of without any order as to costs.