For the AY: 2022-23, the assessee-company filed its return of income.  The return of income has been processed and an intimation u/s 143(1) with some discrepancies has been served.  The AO directed the assessee to file its reply during the period of 30 days.  Though the reply filed by the assessee, the AO had not considered the same and initiated scrutiny proceedings.

On Writ, the Hon’ble High Court found that the AO has not considered the reply filed with explanation for the adjustments made in the intimation u/s 143(1) of the Act.  The Hon’ble Court held that the AO is directed to consider the reply filed by the assessee and accept the ITR accordingly, and thereafter, the Faceless Assessment Officer shall proceed further by providing the opportunity of hearing before passing an order in the scrutiny assessment.  (AY. 2022-23)