AO cannot reject a reply by merely stating that reply was unsatisfactory

Ethos Limited Vs Assistant Commissioner Department of Trade And Taxes & Anr. (Delhi High Court) Introduction: In a recent judgment, the Delhi High Court addressed the legality of rejecting a claim for Input Tax Credit (ITC) without due consideration of the taxpayer’s response. The case of Ethos Limited Vs Assistant Commissioner Department of Trade And Taxes & Anr. sheds light on the importance of a thorough review process in tax matters. Detailed Analysis: The petitioner contested an order dated 23.12.2023, which imposed a demand of Rs. 1,36,98,144.00, including penalties, under ...