Period of Thirty days u/s 148A(b) can be extended by Application of Assessee: Delhi HC [Read Order]

In a recent ruling, the Delhi High Court comprising Justice Manmohan & Justice Manmeet Pritam Singh Arora has held that period of thirty days u/s 148A(b) can be extended by the application of the assessee.

The petitioner approached the High Court challenging the order passed under Section 148A(d) of the Income Tax Act, 1961 by Respondent and notice dated 31st March 2022 issued under Section 148 of the Act for the assessment year 2018-19.

The Petitioner states that a Show Cause Notice under Section 148A(b) of the Act was issued and was directed to file its reply by 24th March 2022. The applicant submitted an application for adjournment requesting the Respondent to grant time till 27th March. The petitioner stated that the submission was filed on 27th March 2022 by way of email, and the online submission portal was closed by the Respondent on 24th March 2022.

The respondent accepted the notice and stated that the Assessing Officer had the right to close the online portal, as the petitioner had been granted only seven days’ time to file a response to the notice issued under Section 148A(b) of the Act dated 27th March 2022.  Further states that just an adjournment application filed can’t presume that the adjournment would be allowed.

The Court observed that the petitioner has the right to get adequate time in accordance with the Act to submit its reply and that Section 148A(b) permits the Assessing Officer to suo moto provide up to thirty days’ period to an assessee to respond to the show-cause notice, which period may be further extended upon an application made by the Assessee.

The Coram set aside the impugned order issued under Section 148A(d) of the Act and the notice issued under Section 148 of the Act, further directed to take the submission filed on 27th March 2022 on record and pass a reasoned order. Mr Divyanshu Agarwal appeared on behalf of the petitioner and Mr Ajith Sharma appeared on behalf of the respondent.

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