INCOME TAX ACT, 1961

Section 154

Rectification - Validity - Rectification application rejected in sketchy and mechanical manner without affording any other opportunity of hearing -

Assessee-society filed return of income as per CBDT's Circular dated 27-2-2019, wherein time to file return was extended upto 28-2-2020. Although the assessee filed the return within the provisions of the said circular, however it received assessment on 29-6-2019. Thus, the assessee filed a rectification application but the same was rejected, on the ground that the rectification application could not be decided owing to some non functionality. Accordingly, the assessee filed a writ petition. It submitted that the rectification application was rejected without complying with principles of natural justice. Held: It was clear that the rectification application would not have been undertaken, owing to certain technical problems i.e., the functionality of the Department. However, the same was rejected in a most sketchy and mechanical manner. Even the order did not disclose affording of any other opportunity of hearing. Accordingly, the assessee could not be relegated to alternate remedy as the order prima facie was without jurisdiction. Hence, the matter was remanded to the concerned ITO to decide the rectification application afresh, in accordance with law and after affording an opportunity of being heard to the assessee.

REFERRED :

FAVOUR : Matter remanded

A.Y. :

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