Request of 10-days Adjournment to file SCN Response not Considered by Income Tax Dept: Delhi HC sets aside Assessment Order [Read Order]

The Delhi High Court invalidated the assessment order made by the Income Tax authorities, neglecting the request to postpone the response to the Show Cause Notice (SCN) and passed the order violating the principles of natural justice.

This writ petition concerns Assessment Year (AY) 2013-14. The petitioner, Usha Gupta seeks to assail the assessment order, dated 18.05.2023, passed under Section 147 read with 144B of the Income Tax Act, 1961.

Nitin Gulati, counsel appeared on behalf of the petitioner, confines his challenge, at this juncture, only to the infraction of principles of natural justice. The counsel submitted that the Show Cause Notice was served on 08.05.2023 to the petitioner proposing a variation of taxable income.

Through the SCN, the petitioner was given a deadline of May 10, 2023 (at 15:46 hours) to submit a response. However, on the following day, May 9, 2023, the petitioner requested an adjournment until May 18, 2023 due to the need to collect relevant materials for their response to the SCN.

It was further submitted that the request was not dealt with and on 18.05.2023 when she attempted to upload her response, she could not do so as the designated portal had been closed.

The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia stated that “Without making any observations on the merits of the matter, we are inclined to set aside the assessment order, as this would be the best way forward.” However, the bench ruled that as long as the Assessing Officer (AO) gives the petitioner a chance to submit their argument, they may issue a new assessment order.

The High Court further instructed that the Assessing Officer (AO) should make sure that the petitioner is granted access to the portal for uploading their response, as the petitioner’s legal representative indicated that they would submit their reply within three weeks.

Moreover, the petitioner is granted the right to send a copy of their response to the Jurisdictional Assessing Officer (JAO) via email. Following this, the AO will send a notice to the petitioner for a face-to-face meeting, specifying the date and time for the hearing.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates