Indian Education Society Vs ACIT (Exemption) (Bombay High Court)
The recent judgment by the Bombay High Court in the case of Indian Education Society vs. ACIT (Exemption) addresses the issue of time provided for compliance with notices under the Income Tax Act.
The petitioner challenged an order passed under Section 148A(d) of the Income Tax Act, along with a consequential notice issued under Section 148 of the Act. The petitioner argued that they were unable to respond to the notice within the given time frame due to the limited number of working days provided.
The Court noted that the notice was issued on March 11, 2022, which fell on a Friday, and the petitioner was expected to reply by March 21, 2022. However, considering the two weekends within this period, the effective time for compliance was reduced to only six working days. The Court acknowledged the practical difficulties faced by the petitioner, particularly considering that they are a Public Trust running a school.
In light of these circumstances, the Court quashed the impugned order and remanded the matter for de novo consideration. It also set aside the consequential notice issued under Section 148 of the Act. The Court directed the petitioner to reply to the notice within four weeks, allowing the annexation of relevant documents. Additionally, the respondents were instructed to dispose of the notice within six weeks, providing a reasoned order and granting a personal hearing to the petitioner.
