Relief to EY: Right to file Objection to SCN cannot be denied due to One Day Delay in asking for Adjournment by Non-Resident, rules Delhi HC [Read Order]
![Relief to EY: Right to file Objection to SCN cannot be denied due to One Day Delay in asking for Adjournment by Non-Resident, rules Delhi HC [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/05/EY-SCN-Non-Resident-Delhi-HC-taxscan.jpg "Relief to EY: Right to file Objection to SCN cannot be denied due to One Day Delay in asking for Adjournment by Non-Resident, rules Delhi HC [Read Order]")
In a relief to Ernst and Young U.S. LLP, the Delhi High Court has held that the right to file an objection to the show cause notice cannot be denied to the assessee, a non-resident assessee merely because there was a delay of one day in asking for adjournment. The division bench of the High Court comprising Justice Manmohan and Justice Manmeet Pritam Singh Arora was considering a petition...
In a relief to Ernst and Young U.S. LLP, the Delhi High Court has held that the right to file an objection to the show cause notice cannot be denied to the assessee, a non-resident assessee merely because there was a delay of one day in asking for adjournment.
The division bench of the High Court comprising Justice Manmohan and Justice Manmeet Pritam Singh Arora was considering a petition by the Big 4 audit firm where the assessee-firm had been given time till 8th April, 2022 to reply to the Show Cause notice dated 30th March, 2022 as well as corrigendum dated 1st April, 2022.
The petitioner contended that the impugned order under Section 148A(d) has been passed without considering the Petitioner’s request for adjournment dated 09th April, 2022 as well as 12th April, 2022 and detailed reply dated 13th April, 2022 to the Show Cause notice. He emphasises that the impugned order proceeds on the basis that the Petitioner did not file any reply to the Show Cause Notice.
After considering the arguments, the Court held that the Petitioner-Assessee has a right to get adequate time in accordance with the Act to submit its reply.
“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 issued under Section 148A(b), which period may in fact be further extended upon an application made by the Assessee in this behalf, and such period given to the assessee is excluded in computing the period of limitation for issuance of notice under Section 148 of the Act in terms of the third proviso to Section 149 of the Act,” the Court said.
Allowing te petition, the Court observed that “Since, in the present case, the Petitioner-Assessee is a resident of the United States of America, this Court is of the view that the delay of one day in asking for an adjournment should not have led to closure of the right to file a reply to the Show Cause Notice.”
To Read the full text of the Order CLICK HERE
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