Ultra Drugs Private Limited Vs PCIT (Himachal Pradesh High Court)
Introduction: In a significant ruling, the Himachal Pradesh High Court addressed the issue of undue haste in the assessment proceedings under the Income Tax Act, 1961. The court set aside an order passed under Section 143(3) of the Act, highlighting the inadequate time provided to the petitioner, Ultra Drugs Private Limited, to respond to a show-cause notice. The court remitted the matter back to the Principal Commissioner of Income Tax (PCIT) for reconsideration, ensuring that procedural fairness is upheld in tax assessments.
Background of the Case: Ultra Drugs Private Limited, a pharmaceutical manufacturer, filed its return for the assessment year 2022-23 on October 17, 2022. The company’s case was selected for scrutiny, and subsequent notices under Section 142(1) of the Income Tax Act were issued. The petitioner complied with all these notices and furnished detailed replies within the stipulated time frames.
The Show-Cause Notice and Response Timeline: On March 20, 2024, at 10:59 p.m., the petitioner received an email show-cause notice requiring a response by 3:45 p.m. on March 24, 2024. Despite being a Sunday, Ultra Drugs Private Limited managed to submit its response via email at 11:39 p.m. on the same day. However, the e-filing portal had been closed by the Assessing Officer, preventing the petitioner from uploading the response directly onto the portal.
