ITAT Sets Aside Best Judgment Assessment u/s 144, Orders Fresh Hearing Noting Prior Grant of S.11...

The Income Tax Appellate Tribunal (ITAT) has set aside best judgment assessment orders and ordered fresh hearings, noting the prior grant of an exemption. This significant ruling provides relief to taxpayers, emphasizing that tax authorities cannot resort to arbitrary "best judgment" assessments if previous exemptions or valid assessments exist. The ITAT found that the tax department failed to consider the historical context of tax exemptions. By ordering fresh hearings, the tribunal ensures that the assessments are conducted fairly, taking into account all relevant facts and legal provisions applicable to the taxpayer.