SKM Animal Feeds and Foods (India) Private Limited Vs ACIT (Madras High Court)
Assessment Order was set aside and remanded back as it was passed hastily amidst approaching deadline without considering assessee’s submission
Conclusion: Since assessment order which was passed hastily without considering the taxpayer’s submission amidst the approaching deadline, the case was remitted back to the respondents to pass orders on merits, within a period of six months from the date of receipt of a copy of this order.
Held: The case of assessee-company was that originally the assessment was transferred to the National e-Assessment Centre and notices were issued by the National e-Assessment Centre, New Delhi. Assessee had also complied with the queries raised by the National e-Assessment Centre and in September 2021, the file was transferred to the first respondent and series of notices were issued to assessee under Section 142(1) to which also assessee complied with. Assessee received a show-cause notice from AO at 22:50 (10.50 PM) hours on 27.09.2021, asking for a response by 29.09.2021. Assessee 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. It filed a writ petition before the Madras High Court where assessee’s argued that the order was passed after the expiration of the limitation period, as it was sent via email on 01.10.2021 and the assessment order was non-est in law inasmuch as the time for completing the assessment had expired on 30.09.2021. It was held that the assessment has been completed in a hurry as otherwise the assessment would have got time barred after 30.09.2021. Therefore, neither assessee nor the respondents could be found fault on account of the limitation, which would operate against the respondents. To balance the interest of the parties, the impugned Assessment Order was set aside and the case was remitted back to the respondents to pass orders on merits, within a period of six months from the date of receipt of a copy of this order.
