DCIT Vs Vishwanath Singhal (ITAT Delhi)
Delhi ITAT Quashes Reassessment for Granting Less Than Mandatory Seven Days’ Time Under Section 148A(b)
The Delhi ITAT quashed the reassessment proceedings, holding that the notice issued under section 148A(b) was invalid as it granted the assessee less than the mandatory minimum period of seven days to respond. The Assessing Officer issued the notice on 12 March 2022, requiring the assessee to furnish a reply by 17 March 2022, thereby violating the statutory requirement prescribed under section 148A(b).
The Tribunal relied on the Delhi High Court’s decision in Shri Sai Co-operative Thrift and Credit Society Ltd. v. ITO, which held that granting not less than seven days to respond is a mandatory requirement and that failure to do so vitiates the entire reopening process. The High Court had further held that even if the assessee submits a reply within the curtailed period, the statutory violation is not cured where inadequate time causes prejudice.
Applying the above binding precedent, the Tribunal held that the reassessment was legally unsustainable and quashed the reopening proceedings. Consequently, the assessee’s cross-objection was allowed, the Revenue’s appeal was dismissed, and all issues on merits were rendered academic.
Cases Discussed
FULL TEXT OF THE ORDER OF ITAT DELHI
