Delhi High Court Quashes Best Judgment Assessment as Company Was Under Insolvency Process
The Delhi High Court quashed an ex parte income tax assessment order as the order was passed without giving a fair opportunity for a hearing.
The assessing officer had passed an order under Section 143(3) read with Section 144B of the Income Tax Act, 1961. However, since the taxpayer did not respond to this, the AO passed the best judgment assessment, raising a high demand.
However, at that time, the company was going through insolvency, for which the National Company Law Tribunal (NCLT) had appointed an Interim Resolution Professional (IRP). Due to this, the company’s management did not have control over the company, and the company could not…