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2022 Supreme(Del) 832
IN THE HIGH COURT OF DELHI AT NEW DELHI
Manmohan, Manmeet Pritam Singh Arora, JJ.
Shubham Thakral - Appellant
Versus
Income Tax Officer - Respondent
W.P.(C) 9293 of 2022
Decided On : 03-06-2022
Important Points
Subject
Taxation Law - Income Tax
Act Referred
Headnote
Income Tax Act - Notice Period - The court held that a minimum time of seven days has to be granted to the Assessee to file its reply to the show cause notice under Section 148A(b) of the Income Tax Act, 1961. The impugned order was set aside, and the Assessing Officer was directed to pass a fresh reasoned order in accordance with law after considering the reply of the Petitioner.
Fact of the Case:
The writ petition challenged the notice issued under Section 148A(b) of the Income Tax Act, 1961 and the order passed under Section 148A(d) for the Assessment Year 2018-19, citing insufficient response time and violation of statutory mandate.
Finding of the Court:
The court set aside the impugned order and directed the Assessing Officer to pass a fresh reasoned order in accordance with law after considering the reply of the Petitioner.
Issues: Insufficient response time and violation of statutory mandate under Section 148A(b) of the Income Tax Act, 1961.
Ratio Decidendi: A minimum time of seven days has to be granted to the Assessee to file its reply to the show cause notice under Section 148A(b) of the Income Tax Act, 1961.
Final Decision: The impugned order passed under Section 148A(d) of the Act was set aside, and the Assessing Officer was directed to pass a fresh reasoned order in accordance with law after considering the reply of the Petitioner.
Mr. Sumit Kumar Batra, Advocate, for the Appellant; Mr. Amrit Pradhan, Advocate, Mr. Ajit Sharma, for the Respondent.
JUDGMENT
Manmohan, J. (Oral). - C.M.No.27835/2022
Exemption allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) No.9293/2022 & C.M.No.27834/2022
1. Present writ petition has been filed challenging the notice issued under Section 148A(b) of the Income Tax Act, 1961 (for short 'the Act') dated 23rd March, 2022 and the order passed under Section 148A(d) of the Act dated 30th March, 2022 for the Assessment Year 2018-19.
2. Learned counsel for the Petitioner states that only three days' time was granted to the Petitioner to respond as against the mandatory statutory period of at least seven days. He further states that though the annexure annexed with the notice granted the Petitioner eight days' time to respond, yet the e-filing submission portal was closed on 26th March, 2022 itself in violation of the statutory mandate of Section 148A (b) of the Act.
3. Learned Counsel for the Petitioner relies on the decision of this Court in Shri Sai Co-operative Thrift and Credit Society Ltd Versus ITO, Ward 43-6 [W.P.(C) No.7385/2022], wherein it has been held that under Section 148A(b) of the Act, a minimum time of seven days has to be granted to the Assessee to file its reply to the show cause notice.
4. Issue notice. Learned counsel for the Respondent on instructions states that the Respondent-Revenue has no objection if the present matter is remanded back to the Assessing Officer for a fresh decision in accordance with law.
5. Consequently, the impugned order passed under Section 148A(d) of the Act dated 30th March, 2022 for the Assessment Year 2018-19 is set aside and the Assessing Officer is directed to pass a fresh reasoned order in accordance with law after considering the reply of the Petitioner, which is directed to be filed within a week. This Court clarifies that it has not commented on the merits of the controversy. The rights and contentions of all the parties are left open.
