Case Law Details
Ketan Ribbons Pvt Ltd Vs National Faceless Assessment Centre Delhi (Delhi High Court)
Hon’ble Delhi High Court quashed Assessment Order, Notice of demand and Penalty notice passed on 23-05-2021 during COVID-19 where show cause notice and draft assessment order were issued during lockdown and the assessee could not file any reply. The court further was of the view that filing of earlier replies was not relevant as the petitioner had independent statutory right to file a reply to the show cause notice and draft assessment order. DHC also rejected the revenue argument of availability of alternative remedy to the assessee where there is violation of principle of natural justice to hold the maintainability of WRIT.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Present writ petition has been filed challenging the assessment order dated 23rd May 2021 and also notice of demand issued under Section 156 of the Income Tax Act, 1961 [for short ‘the Act’] and notice for initiating penalty proceedings issued under Section 274 read with Section 271AAC(1) of the Act, of even date for the AY 2018-19.
2. The relevant facts of the present case are that the Assessing Officer had extended the timeframe for filing response/objections to the show cause notice and draft assessment order dated 22nd April 2021 from 26th April 2021 to 17th May 2021. As, admittedly, no response/objection was filed by the petitioner, the Assessing Officer proceeded to pass the impugned assessment order dated 23rd May 2021 under Section 143(3) read with Section 144B of the Act in violation of the principle of natural justice.
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