Advance Realty Developers Vs National E – Assessment Centre Delhi (Gujarat High Court)
The petitioner, a registered partnership firm, challenged the Assessment Order dated 27.03.2021 passed under Sections 143(3), 143(3A) and 143(3B) of the Income Tax Act, 1961 for Assessment Year 2018-2019. The petitioner had electronically filed its return declaring total income of Rs.2,740/-. During scrutiny proceedings, notices under Sections 143(2) and 142(1) were issued and replies were filed. On 25.03.2021, a show cause notice under Section 143(3), together with a Draft Assessment Order, was served. The petitioner received the notice on 26.03.2021 and sought an adjournment until 10.04.2021, citing medical exigencies arising from the second wave of COVID-19 and difficulties in arranging resources to compile the required information.
Without responding to the adjournment request, the respondent passed the assessment order on 27.03.2021, making certain disallowances and determining total income at Rs.7,18,36,307/-. A demand notice under Section 156 and penalty proceedings under Section 274 read with Section 270A were also initiated. The petitioner subsequently submitted a grievance through the ITBA portal.
The Revenue contended that the petition was premature because an alternative remedy by way of appeal before the CIT(A) and thereafter the ITAT was available. It also contended that the adjournment request had not been received and that the assessment was completed as the limitation period was approaching. The petitioner disputed this and relied upon the ITBA records, also contending that the assessment limitation had been extended until 30.04.2021.
