In a recent ruling, the bench of Justice Rajiv Shakdher and Justice Girish Kathpalia of Delhi High Court has set aside the assessment order on grounds that the Assessing Officer violated the principles of natural justice without considering the relaxation request to file reply under Income Tax Act, 1961.
The petitioner’s primary complaint is that the natural justice principles have been completely violated. Examining the notices for Assessment Years (AYs) 2013–2014 to 2019–20 would demonstrate that the petitioner had been given a grace period to file its return(s) within thirty (30) days of the notices’ service date.
In the interregnum, the Assessing Officer also served notices under Section 142(1) of the Income Tax Act on the petitioner, requesting a number of pieces of information.
The petitioner stated in the reply that the information requested could not be provided within the timeframe permitted, which was two (2) days, or by 11:00A.M., to the Assessing Officer. As a result, the petitioner requested a grace period of thirty (30) days to submit a reply.
What matters is that the petitioner made the Assessing Officer aware that a return filing period of thirty (30) days had been provided via notices dated September 3, 2023, and that the period would have ended only on April 8, 2023.
However, it appeared that the Assessing Officer disregarded this petitioner’s request and went on to issue the contested assessment orders, dated March 28, 2023, for the fiscal years 2013–2014 through 2019–20.
The bench noted that by sending notices earlier than 30 days, the Assessing Officer had transgressed natural justice standards. Thus, set aside the contested orders from the relevant evaluation years as a result.
The Assessing Officer also granted permission to reopen the matter, nonetheless. The Assessing Officer will disclose information and materials that, while being in his possession, have not been given to the Petitioner, it has been made obvious.
It was also directed to conduct a personal hearing to the authorised representative of the petitioner and the notices shall indicate the date and time of the hearing.
The petitioner was directed to furnish the information sought by the Assessing Officer via notice issued under Section 142(1) of the Income Tax Act within the next three (3) weeks.
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