Assessment Order under Income Tax Act passed before time to file Reply to SCN expired: Delhi HC quashes Assessment Order [Read Order]
![Assessment Order under Income Tax Act passed before time to file Reply to SCN expired: Delhi HC quashes Assessment Order [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/10/Assessment-Order-Income-Tax-Act-SCN-Assessment-Order-under-Income-Tax-Act-passed-before-time-to-file-Reply-to-SCN-expired-taxscan.jpg "Assessment Order under Income Tax Act passed before time to file Reply to SCN expired: Delhi HC quashes Assessment Order [Read Order]")
The Delhi High Court quashed the assessment order passed under the Income Tax Act, 1961 as the same was passed before time to file reply to the show cause notice (SCN) expired. The preliminary ground on which the petitioner, Wonder Bricks, sought to assail the assessment order is that although the show cause notice dated 31.03.2023 gave time to the petitioner/assessee to file a reply...
The Delhi High Court quashed the assessment order passed under the Income Tax Act, 1961 as the same was passed before time to file reply to the show cause notice (SCN) expired.
The preliminary ground on which the petitioner, Wonder Bricks, sought to assail the assessment order is that although the show cause notice dated 31.03.2023 gave time to the petitioner/assessee to file a reply by 05.05.2023 15:49 hours, the impugned assessment order has been passed before that date. Sanjeev Menon, standing counsel, who appeared on behalf of the respondent/revenue, said that he has not been served with a copy of the case papers.
The Court granted time to return with instructions. It was made clear that if instructions are received to resist the writ petition, a counter-affidavit will be filed in the matter. A counter-affidavit has not been filed. Therefore, the assertions made by the petitioner remain unrebutted.
A Division Bench comprising Justice Rajiv Shakdher and Justice Girish Kathpalia observed that “Clearly, the record shows that the impugned assessment order was passed before the time to file a reply to the show cause notice expired. The show cause notice was issued on 31.03.2023, giving time to the petitioner/assessee to file its reply by 05.05.2023 (15:49 hours), as noted on 04.09.2023. The impugned order was passed on 13.04.2023. In these circumstances, we believe that the best way forward would be to set aside the assessment order.”
“Liberty is, however, given to the Assessing Officer (AO) to pass a fresh assessment order, albeit, in accordance with the law. 9. To hasten the proceedings, the petitioner/assessee will file a reply to the show cause notice dated 31.03.2023 within four (4) weeks of receipt of the copy of the order passed today” the Court noted.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
