Delhi High Court sends case back to valuation officer after quashing it

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The Delhi High Court bench Justice Manmohan and Justice Manmeet Pritam Singh Arora referred the matter to the assessment officer as only 3 days was given to respond to the income tax notice.

The petitioner/reviewer challenged the notice issued under section 148A(b) of the Income Tax Act 1961 and the order passed under section 148A(d) for the 2018-2019 assessment year.

The assessee argued that he was given only three days to respond, as opposed to the mandatory legal time limit of at least seven days. Despite the fact that the schedule attached to the notice gave the petitioner eight days to respond, the electronic filing submission portal was closed early, in violation of Section 148A(b) of the Tax Act on income.

The petitioner relied on the decision of the Delhi High Court in the case Shri Sai Co-operative Thrift and Credit Society Ltd v ITO. The Delhi High Court held that under Section 148A(b), a minimum of seven days should be given to the assessee to file their response to the show cause notice.

The respondent/department had no objection to the matter being referred back to the assessment officer for redetermination in accordance with the law.

The court set aside the order made under section 148A(d) for the 2018-19 valuation year. The court ordered the assessment officer to make a further reasoned order in accordance with the law after reviewing the petitioner’s response, which was to be filed within one week.

Case title: Shubham Thakral v ITO

Quote: 2022 LiveLaw (Delete) 593

Counsel for the Applicant: Attorney Sumit Kumar Batra

Counsel for the Respondent: Attorney Amrit Pradhan

Click here to read/download the order


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