Facts of the Case

  • The petitioner was issued a notice dated 31.03.2023 under Section 148A(b) for AY 2019–2020.
  • The petitioner was required to submit a reply by 13.04.2023.
  • On 13.04.2023, the petitioner sought 30 days’ extension citing the demise of a close family member on 08.04.2023.
  • The Assessing Officer granted only a short extension till 18.04.2023.
  • Due to the bereavement, the petitioner could not file a reply within the limited time.
  • Consequently, an adverse order was passed on 19.04.2023.

Issues Involved

  1. Whether the Assessing Officer failed to provide reasonable opportunity to the petitioner under Section 148A(b).
  2. Whether passing the impugned order despite justified request for extension violated principles of natural justice.

Petitioner’s Arguments

  • The petitioner contended that the request for extension was genuine and supported by a death certificate.
  • It was argued that insufficient time was granted despite exceptional circumstances.
  • The impugned order was passed without considering the inability to respond due to bereavement.
  • Hence, the order was arbitrary and violative of natural justice.

Respondent’s Arguments

  • The Revenue contended that an opportunity had already been granted.
  • A short extension was provided, and the petitioner failed to utilize it.
  • The proceedings were conducted based on available records.

Court’s Findings / Order

  • The Court observed that the petitioner had suffered a bereavement and required reasonable time.
  • It held that the Assessing Officer ought to have granted greater latitude considering the circumstances.
  • The Court noted that ceremonies related to such events may take at least two weeks.
  • Accordingly, the impugned order dated 19.04.2023 was set aside.
  • Directions issued:
    • Petitioner to file reply within two weeks.
    • Assessing Officer to pass fresh order after considering reply.
    • Personal hearing must be granted.

Important Clarification

  • The judgment reinforces that procedural compliance under Section 148A must align with principles of natural justice.
  • Even in tax proceedings, reasonable opportunity cannot be denied in exceptional personal circumstances.
  • Authorities must adopt a humane and pragmatic approach while granting time extensions.

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60819052023CW68062023_184916.pdf

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