Failure to consider submissions in an assessment order constitutes a breach of natural justice, necessitating a remand for fresh consideration.

JUDGMENT :

PRANAV TRIVEDI, J.

1. Heard learned advocate Mr. Manish Shah for the petitioner and learned Senior Standing Counsel Ms. Maithili Mehta for the respondent.

2. Rule, returnable forthwith. Learned advocate Ms. Maithili Mehta waives service of notice of rule for and on behalf of the respondent.

3. Having regard to the controversy involved in this petition, with the consent of the learned advocates for the respective parties, the matter is taken up for final hearing.

4. Present writ-petition under Article 226 of the Constitution of India is preferred for the following prayers:

“A) this Hon'ble Court be pleased to call for the records of the proceedings, look into them and be pleased to issue a writ of certiorari or any other appropriate writ, order or direction quashing the assessment order passed by Respondent No.1 u/s.147 r.w.s. 144B dated 19.03.2024 at Annexure-M and demand notice u/s.156 dated 19.03.2024 at Annexure-N.

B) this Hon'ble Court be pleased to call for the records of the proceedings, look into them and be pleased to issue a writ of mandamus or any other appropriate writ, order or direction directing the Respondents to grant complete stay of demand arising out of assessment order passed u/s.147 r.w.s. 144B dated 19.03.2024 at Annexure-M.

C) Pending the hearing and final disposal of this application, this Hon'ble Court be pleased to stay operation and implementation of the assessment order passed u/s.147 r.w.s. 144B dated 19.03.2024 at Annexure-M and further stay the recovery of demand in pursuance of the notice issued u/s.156 at Annexure-N.

D) This Hon'ble Court be pleased to grant any further or other relief as this Hon'ble Court deems just and proper in the interest of justice.”

5. Brief facts giving rise to filing of the present petition are as under:

5.1 The petitioner is an individual, having income from various sources including the income from other sources, long term capital gain, agricultural income and income from partnership firm. The petitioner filed return of income under Section 139(1) of the Income Tax Act, 1961 ( For short ‘the Act’) on 31.10.2018 declaring total income of Rs.3,23,520/-for Assessment Year 2018-19. No regular scrutiny assessment was made in the case of petitioner.

5.2 Thereafter, the petitioner received a notice u/s.148A(b) dated 11.03.2022 stating that, genuineness of loss of Rs.19,88,297/- pertaining to sale of shares of Kushal Limited cannot be ascertained, and hence, income to the extent of Rs.19,88,297/- has escaped assessment. Thereafter, Respondent No.2 passed order u/s.148A(d) dated 07.04.2022 stating that, the case of the petitioner is a fit case for issuance of notice u/s.148 of the Act as income chargeable to tax of Rs.19,88,297/- in respect of transactions pertaining to sale of shares of Kushal Limited has escaped assessment. The aforesaid order is followed by notice u/s.148 dated 07.04.2022.

5.3 Meanwhile, the case of the petitioner was transferred to National Faceless Assessment Unit vide intimation dated 19.01.2023. The petitioner also received notice u/s.142(1) dated 06.11.2023 asking the petitioner to furnish the details pertaining to transactions executed with Kushal group. The petitioner, in pursuance of the notice issued u/s.148, filed his return of income on 08.11.2023 declaring income as offered in the return filed u/s.139(1) of the Act. In response to the aforesaid notice dated 6.11.2023, the petitioner vide his letter dated 09.11.2023 furnished the requisite details including the complete details relating to transaction executed with Kushal group. Thereafter, notice u/s.143(2) dated 05.12.2023 was issued to the petitioner.