Delhi HC upholds Taxpayer’s Right to File Reply to SCN and Draft Assessment Order: Directs NFAC to pass Fresh Order [Read Order]
![Delhi HC upholds Taxpayer’s Right to File Reply to SCN and Draft Assessment Order: Directs NFAC to pass Fresh Order [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/05/Delhi-High-Court-Delhi-HC-Taxpayers-SCN-Assessment-Order-NFAC-Fresh-Order-taxscan.jpeg "Delhi HC upholds Taxpayer’s Right to File Reply to SCN and Draft Assessment Order: Directs NFAC to pass Fresh Order [Read Order]")
The Delhi High Court has last week held that the taxpayer has the right to file reply to show-cause notice and draft assessment order and accordingly, directed the National Faceless Assessment Centre (NFAC) to pass an assessment order afresh. A bench of Justice Manmohan and Justice Manmeet Preetam Singh Arora was considering a petition filed by M/s Ketan Ribbons Pvt Ltd wherein the...
The Delhi High Court has last week held that the taxpayer has the right to file reply to show-cause notice and draft assessment order and accordingly, directed the National Faceless Assessment Centre (NFAC) to pass an assessment order afresh.
A bench of Justice Manmohan and Justice Manmeet Preetam Singh Arora was considering a petition filed by M/s Ketan Ribbons Pvt Ltd wherein the Assessing Officer had extended the timeframe for filing objections to the show cause notice and draft assessment order dated April 22nd, 2021, from April 26th, 2021, to May 17th, 2021. The Assessing Officer proceeded to pass the assessment order dated May 23, 2021 under Section 143 (3) read with Section 144B of the Income Tax Act, 1961, in violation of the principle of natural justice.
While allowing the petition, the bench held that “this Court also takes judicial notice of the difficulties faced by the society, in general, and the Assessees, in particular, in filing replies to show cause notices. This Court is further of the view that the filing of earlier replies is of no relevance as the Petitioner had an independent statutory right to file a reply to the show cause notice and draft assessment order. Consequently, in the present case there has been a violation of principle of natural justice.”
Holding that an alternative remedy is not a bar to the exercise of the writ jurisdiction of the High Court if the writ petition is filed for enforcement of a fundamental right protected by Part III of the Constitution, the Court added that “where there has been a violation of the principles of natural justice; where the order or the proceedings are wholly without jurisdiction; or when the vires of a legislation is challenged. Accordingly, the present writ petition is maintainable.”
To Read the full text of the Order CLICK HERE
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