Addition of Rs.344.55 Cr during assessment proceeding with less than 72 Hours to reply to SCN: Assessment quashed by Bombay HC for de-novo consideration by AO.
Pleased to share the order dated 30.04.2024 passed by the Hon’ble High Court of Bombay in W.P. No. 6129/2024, wherein the Hon’ble High Court of Bombay was pleased to quash the assessment order dated 29.04.2024 passed by the Assessment Unit, National Faceless Assessment Centre u/s 143(3) r/w 144B of the Income Tax Act for the A.Y. 2022-23.
The Department vide the impugned assessment Order had made an addition of Rs.344,55,68,768/- to the total income of the Petitioner company, and thereby imposed upon the Petitioner company total tax liability of Rs.104,79,23,710/- for A.Y. 2022-23.
The Petitioner had challenged the assessment Order on two grounds –
i. That the Petitioner was given less than 72 hours to file its reply to the show cause notice dated 21.03.2024, as the reply had to be filed by 12:10 hrs on 25.03.2024 (which was also a holiday on account of the festival Holi).
ii. The Order was passed without giving the Petitioner Company and opportunity of personal hearing which is mandatory under the faceless scheme.
The Hon’ble High Court accepted the submissions advanced on behalf of the Petitioner and quashed the impugned assessment order and remanded the matter back for de-novo consideration.
The Hon’ble High Court directed the Department to give the Petitioner a reasonable opportunity to file its reply and, further give a Petitioner Company an opportunity of personal hearing before passing any Order. The Department has also been directed to pass a reasoned order after considering all submissions on behalf of the Petitioner Company. Further, the Hon’ble High Court was also pleased to direct that the Faceless Assessing Officer who passed the impugned assessment order cannot be re-assigned the case of the Petitioner and the matter has to be assigned to a new faceless assessing officer.
The copy of the order is as under:
