A division bench of the Delhi High Court, while quashing an income tax order for the violation of natural justice principles, held that fresh adjudication is required since the assessee did not get the minimum time as mandated under Section 148A(b) of the Income Tax Act, 1961.
The Petitioner, Mr. Shubahm Thakral approached the High Court contending 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.
The division bench comprising Justice Manmohan and Justice Manmeet Pritam Singh Arora relied on the decision in Shri Sai Co-operative Thrift and Credit Society Ltd Versus ITO, Ward 43-6 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.
Relying on the above decision, the High Court quashed the order and held that “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.”
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