Wp/694/2022 Of Solidarity Financial Services Private Limited v. The Income Tax Officer 4 (3) (1) And Anr

Digitallysigned byPURTIPURTIPRASADPRASADPARAB IN THE HIGH COURT OF JUDICATURE AT BOMBAYPARABDate:2022.04.08ORDINARY ORIGINAL CIVIL JURISDICTION11:24:42+0530 WRIT PETITION NO. 694 OF 2022 Solidarity Financial ServicesPrivate Limited V/s.The Income Tax Officer 4(3)(1) and Anr. ….Petitioner…Respondents ---- Mr. B.M. Chatterji, Senior Advocate i/b Mr. Shreyash J. shah for Petitioner.Mr. Suresh Kumar for Respondents. ---- CORAM : K.R. SHRIRAM & N. R. BORKAR, JJ. DATED : 6[th] APRIL, 2022 P.C. : 1.Heard Mr. Chatterji and also considered the reasons recordedfor re-opening as provided on 25[th] May, 2021. 2.Here is a case where return of income has been processed underSection 143(1) of the Income Tax Act, 1961 (the Act) and therefore theAssessing Officer has to only make out tangible material in the reasonsrecorded. We find, prima facie, there is tangible material in the reasonsrecorded. At the same time, we also find that in the objections filed bypetitioner in its communication dated 8[th] July, 2021 to the re-opening,petitioner has stated that various information has been mentioned in thereasons recorded for re-opening alongwith documentary evidence and/orstatement of brokers etc. but none of the statement or documentaryevidence have been provided. In the order on objections dated 27[th] July, 2021, which is also impugned in the petition, the Assessing Officer is totallysilent on this grievance of petitioner. In fact, the Assessing Officer, in ourview, should have provided petitioner with copies of these documentaryevidence and statement of brokers etc., and give an opportunity topetitioner to file further objections. The Assessing Officer not having donethat, we are of the view, that the order dated 27[th] July, 2021 certainlyviolates the principles of natural justice. Therefore, we quash and set asidethe order dated 27[th] July, 2021. 3.We hereby direct the Jurisdictional Assessing Officer (JAO) toprovide petitioner with all documents and documentary evidence includinginformation and statements relied upon in the reasons recorded for re-opening and permit petitioner to file further written submissions. To theextent, the documents/information would not relate to petitioner, thoseportions could be redacted. These information/ documents to be providedwithin three weeks of this order being uploaded.. Within three weeksthereafter, petitioner shall file further objections which shall be disposedwithin four weeks of receiving those objections. 4.Petitioner shall also be given a personal hearing before theorder on objections is passed, notice whereof shall be issued atleast sevenworking days in advance. If the Assessing Officer is going to rely on anyorder or judgment of any Court or Tribunal, a list thereof shall also be provided to petitioner with the notice for personal hearing, so thatpetitioner will be able to deal with it or distinguish the same during thepersonal hearing. 5.The time spent from the date of filing the Writ Petition tilldisposal and the time granted for disposal of objections is to be excludedwhile computing the period of limitation for completion of the assessmentproceeding. 6.We have not expressed any opinion on the merits of the case.All rights and contentions of petitioner are kept open. 7.Petition disposed. (N. R. BORKAR, J.) (K.R. SHRIRAM, J.)