Trendsutra Client Services Pvt. Ltd. Vs ACIT (Bombay High Court)
The petitioner challenged an assessment order dated 18 April 2021 for Assessment Year 2018-19, passed under the faceless assessment regime, by which its total income was computed at ₹62.18 crore and a demand of ₹63.35 crore was raised. The petitioner sought quashing of the assessment order and the consequential demand notice.
Initially, the Income Tax Department issued a notice seeking information, to which the petitioner responded. Thereafter, the assessment was transferred to the Faceless Assessment Scheme, 2019. During the proceedings, several notices under Section 142(1) were issued, and the petitioner furnished replies. A further notice dated 9 April 2021 sought additional information regarding unsecured loans and other matters, requiring compliance by 6:54 p.m. on 13 April 2021. However, the notice itself was digitally signed only at 7:00:28 p.m. on 9 April 2021, after office hours. The intervening period included the second Saturday, Sunday, and Gudi Padwa, effectively leaving the petitioner with only one working day to respond.
Despite the limited time available, the petitioner submitted partial details on 13 April 2021, requested additional time owing to the short period granted and the prevailing COVID-19 lockdown, and subsequently filed further submissions on 17 April 2021. Nevertheless, the Assessing Officer passed the assessment order on 18 April 2021 without granting any further opportunity, without issuing a show cause notice, and without furnishing a draft assessment order, even though the assessment contained additions and disallowances prejudicial to the petitioner.
