The Gujarat High Court quashed an assessment order and commented that the filing of reply to show cause notice (SCN) is not possible within 12 Hours.
The petitioner, Dineshkumar Chhaganbhai Nandani, filed return of income for the Assessment Year 2014- 2015 declaring total income of Rs.3,39,730/-. The said return was processed under Section 143(1) of the Income Tax Act, 1961. Thereafter, the respondent No.1 issued impugned notice under section 148 of the Act asking the petitioner to file return of income of A.Y. 2014-2015. The petitioner without prejudice submitted return of income in compliance of the said notice. The reasons recorded by the respondents were provided.
It was also the case of the petitioner that thereafter the respondent No.2 issued show cause notice dated 29.03.2022 as to why proposed variation should not be made. It was stated that the said show cause notice was sent at 11:41 a.m. on 29.03.2022 and it was stated in the said notice that petitioner shall submit reply by 23:59 p.m. on the very same day i.e. on 29.03.2022 and thereby time of 12 hours only was given to the petitioner.
It was further stated that petitioner hurriedly filed part submissions/reply on 29.03.2022 and requested to grant an opportunity of hearing through video conference.
BS Soparkar appearing for the petitioner mainly submitted that the act of giving only 12 hours to file reply to the show cause notice by the respondents is in clear violation of the principles of natural justice. It is submitted that though the petitioner hurriedly filed a reply to the said show cause notice, the respondents have failed to grant adequate opportunity of hearing to the petitioner.
The Standing Counsel further submitted that the petitioner is having alternative efficacious remedy to file appeal before the Appellate Authority against the impugned order passed by the concerned respondent and it is always open for the petitioner to raise all available contentions before the said Appellate Authority and therefore the Court may not entertain the present petition.
A Division Bench of the Gauhati High Court of Justices Vipul M Pancholi and Devan M Desai observed that “In the aforesaid case, less than five hours time was given to the concerned assessee for filing reply and this Court observed that the respondent had failed to grant reasonable opportunity of hearing to the concerned assessee and therefore it was held that it is the case of gross violation of principles of natural justice.”
“Even otherwise, within less than 12 hours, it is difficult for the petitioner to submit complete reply to the respondents” the Court said.
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