Ugar Sugar Works Limited Vs ACIT (Bombay High Court)
In the case of Ugar Sugar Works Limited Vs ACIT, the Bombay High Court quashed a reassessment order passed by the Income Tax Department for failing to address objections raised by the assessee. This petition marked the second round of proceedings, following an earlier writ petition where the court had quashed the Assessing Officer’s order disposing of the assessee’s objections due to incomplete reasons provided for reopening the case under Section 148 of the Income Tax Act, 1961. The court had mandated the department to follow due process, ensuring all objections were addressed, with proper documentation and reasoning.
Subsequently, fresh objections were filed by the petitioner, contesting the validity of the reasons cited for income escapement for the Assessment Year 2013–14. The assessee argued that the grounds were untenable, citing discrepancies in the income figures mentioned by the department. Despite these detailed objections, the court found the Assessing Officer’s subsequent order grossly inadequate, reflecting non-application of mind and failing to comply with judicial directions.
The court observed that the failure to address objections in accordance with law undermined the reassessment process. Referring to its earlier directions, it emphasized that the objections disposal forms the foundation for any reassessment order. By ignoring these directions, the department’s actions demonstrated procedural lapses, warranting intervention. The court quashed the June 2024 reassessment order and directed the department to conduct a fresh hearing and pass a legally compliant order.
