Tax Order Set Aside: Insufficient Time for Reply Leads to Reconsideration of Assessment Notice, No Costs Imposed. The HC set aside the impugned order passed under Sections 143(3) and 144B of the Income Tax Act, 1961, due to insufficient time granted for reply to a ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax Order Set Aside: Insufficient Time for Reply Leads to Reconsideration of Assessment Notice, No Costs Imposed.
The HC set aside the impugned order passed under Sections 143(3) and 144B of the Income Tax Act, 1961, due to insufficient time granted for reply to a show-cause notice. The petitioner's timely submission was ignored by the AO. The matter was remitted for reconsideration, with no costs imposed, and pending applications were disposed of.
Issues involved: The issues involved in this case are related to the time granted for submitting a reply to a show-cause notice under the Income Tax Act, 1961 and the subsequent passing of an order under Sections 143(3) read with Section 144B of the Act without considering the reply submitted by the petitioner.
Detailed Summary:
Issue 1: Time granted for submitting reply to show-cause notice The petitioner, a private limited company engaged in pharmaceutical manufacturing, filed a return u/s 139(1) for the assessment year 2022-23. Subsequently, notices u/s 142(1) were issued, and on 20.03.2024, a show-cause notice was received by the petitioner, requiring a reply by 24.03.2024. The petitioner submitted the response on 24.03.2024, but the Assessing Officer closed the e-filing portal, preventing the upload. The Court found the time granted for the reply to be extremely short, and despite the petitioner submitting the reply on the due date, the Assessing Officer ignored it, leading to the passing of the impugned order.
Issue 2: Passing of order without considering submitted reply Respondent no. 2 passed an order under Sections 143(3) read with Section 144B of the Act on 27.03.2024 without considering the reply submitted by the petitioner. The Court held that the petitioner was not granted reasonable time to reply, and as there was no undue delay in submitting the response, the impugned order was set aside. The matter was remitted back to respondent no. 2 to consider the petitioner's reply and pass a reasoned order in accordance with the law.
The Writ petition was allowed, no costs were imposed, and pending miscellaneous applications were disposed of.
This summary highlights the issues of inadequate time granted for reply submission and the passing of an order without considering the petitioner's response, leading to the court setting aside the order and remitting the matter for proper consideration and decision.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
