Facts of the Case

The present writ petition was filed challenging:

  • Notice issued under Section 148A(b) dated 23 March 2022, and
  • Order passed under Section 148A(d) dated 30 March 2022
    for the Assessment Year 2018–19.

The petitioner contended that:

  • Only three days’ time was granted to respond to the show cause notice.
  • The statutory requirement mandates a minimum of seven days.
  • Although the annexure indicated eight days, the e-filing portal was prematurely closed on 26 March 2022, thereby restricting the opportunity to respond.

Issues Involved

  1. Whether granting less than the statutory minimum time under Section 148A(b) violates principles of natural justice.
  2. Whether closure of the e-filing portal before expiry of the response period invalidates reassessment proceedings.
  3. Whether the order under Section 148A(d) can sustain when procedural safeguards are violated.

Petitioner’s Arguments

  • The petitioner argued that:
    • The law mandates minimum seven days’ time to respond to a notice under Section 148A(b).
    • Granting only three days is in clear contravention of statutory provisions.
    • Premature closure of the e-filing portal deprived the petitioner of a fair opportunity to submit a reply.
  • Reliance was placed on:
    • Shri Sai Co-operative Thrift and Credit Society Ltd vs ITO (Delhi High Court), which held that minimum seven days must be granted for reply.

Respondent’s Arguments

  • The Revenue fairly submitted that:
    • It had no objection if the matter was remanded back to the Assessing Officer for fresh adjudication in accordance with law.

Court’s Findings / Order

  • The statutory requirement under Section 148A(b) must be strictly complied with.
  • The impugned order under Section 148A(d) dated 30 March 2022 was set aside.
  • The matter was remanded back to the Assessing Officer with directions to:
    • Consider the petitioner’s reply, and
    • Pass a fresh reasoned order in accordance with law.

Important Clarification by Court

  • The Court expressly clarified that:
    • It has not adjudicated on the merits of the case.
    • All rights and contentions remain open for both parties.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2022:DHC:2278-DB/MMH03062022CW92932022_162945.pdf

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