Case Law Details
Global Vectra Helicorp Limited Vs Assessment Unit (Delhi High Court)
The recent judgment by the Delhi High Court in the case of Global Vectra Helicorp Limited Vs Assessment Unit has significant implications for income tax assessments. The court’s ruling emphasizes the importance of providing a fair opportunity for the assessee to be heard during assessments conducted by the Income Tax Department.
The petitioner challenged the assessment order passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961, citing inadequate opportunity for a hearing. The crux of the challenge lay in the short timeframe provided to respond to the show cause notice (SCN). Despite the wide-ranging allegations raised in the SCN, the petitioner was given only three working days to submit a response, which was contested as insufficient.
The petitioner, through its counsel, highlighted the discrepancy between the timeline provided and the standard operating procedure (SOP) set by the National Faceless Assessment Centre, which mandates a minimum of seven days for response to the SCN. Additionally, the petitioner requested a personal hearing and the opportunity to present its case through video conferencing.
The respondent countered, stating that the request for a personal hearing should have been made online as per the prescribed procedure. However, the court found no provision in the Act or related regulations mandating such an online request. Furthermore, it noted the obligation under Section 144B(6)(viii) to allow a personal hearing when requested by the assessee.
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