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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Ernst and Young U.S. LLP – Appellant
Versus
Assistant Commissioner of Income-Tax, Circle International, Taxation 1-2-2 – Respondent
JUDGMENT
Manmohan, J. (Oral):
1. Present writ petition has been filed challenging the order dated 13th April, 2022 passed under Section 148A(d) of the Income Tax Act, 1961 (for short `Act') and the notice dated 13th April, 2022 passed under Section 148 of the Act.
2. Learned senior counsel for the Petitioner states that the Petitioner had been given time till 8th April, 2022 to reply to the Show Cause notice dated 30th March, 2022 as well as corrigendum dated 1st April, 2022. He further states that the impugned order under Section 148A(d) has been passed without considering the Petitioner's request for adjournment dated 09th April, 2022 as well as 12th April, 2022 and detailed reply dated 13th April, 2022 (uploaded on 14th April, 2022) to the Show Cause notice. He emphasises that the impugned order proceeds on the basis that the Petitioner did not file any reply to the Show Cause Notice.
3. Issue notice. Mr. Puneet Rai, learned counsel accepts notice on behalf of Respondents-Revenue.
4. He states that in the present case, the adjournment request had not been filed within the stipulated time i.e. till 8th April, 2022. Therefore, according to him, the Assessing Officer was we
Petitioners are entitled to adequate time to respond to tax notices, and minimal delays in requests for adjournments, especially for residents abroad, should not result in dismissal of rights.
The main legal point established in the judgment is the right of the assessee to adequate time to respond to the Show Cause Notice and the exclusion of the period given to the assessee in computing t....
The court affirmed that taxpayers are entitled to adequate time to respond to notices under the Income Tax Act, and failure to consider timely responses constitutes a violation of statutory duties.
The Income Tax Officer failed to comply with mandatory response time requirements, violating the petitioner's right to due process under the Income Tax Act.
Notice issued without granting statutory time to respond violated the principles of natural justice, rendering the order invalid.
Statutory rights require a minimum seven-day response period under Section 148A(b) of the Income Tax Act, which was violated in this case.
Minimum time of seven days 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.
A time extension request must be honored to ensure fair administrative procedure under income tax regulations.
The court emphasized the importance of procedural fairness, stating that petitioners must timely seek necessary information to avoid ex-parte orders, maintaining that delays can lead to adverse legal....
Section 148A(b) permits the Assessing Officer to suo moto provide upto thirty days period to an assessee to respond to the show cause notice.
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