The Assessee is a society manufacturing and selling Khadi products (textiles, agarbathis, oils, honey) claiming exemption under S.. 10(23) of the Act; the dispute centers on an assessment passed without considering a slightly delayed reply under the faceless regime, despite the return having been filed within the Sec. 148 timeline. The Assessing Officer denied the exemption. On writ High Court quashed the assessment and remanded the matter to the Assessing Officer to reconsider the show-cause after taking the Assessee’s reply on record and to decide the exemption under Sec. 10(23), granting an opportunity of hearing. (AY. 2020-21)