J J Foods Private Limited Vs DCIT (Delhi High Court)
Reply Was Late, but Already on Record—AO Cannot Shut His Eyes & Then Open Reassessment u/ss 148A(d) & 148: Delhi HC
Summary: The Delhi High Court has held that where an assessee’s reply to a notice under Section 148A(b) was already available on the income-tax portal before the AO passed the order under Section 148A(d), the AO ought to have considered it, notwithstanding that it was filed after the shortened deadline fixed by him.
The Court observed that the statute contemplated a period of 30 days for filing the reply. There was no pressing urgency requiring the AO to curtail the assessee’s effective opportunity to approximately 15 days. Passing the order without considering the reply already uploaded on the portal amounted to an irregular exercise of power & violation of the principles of natural justice.
Facts of the Case
J J Foods Pvt. Ltd. received a show-cause notice under Section 148A(b) dated 22.02.2024, calling upon it to submit its reply by 03.03.2024.
On 03.03.2024, the assessee requested an adjournment of 15 days. The AO granted a short adjournment & fixed 08.03.2024 as the next date.
On 08.03.2024, the assessee once again requested two weeks’ time to file its reply. Instead of granting the requested period, the AO allowed only two additional days & directed the assessee to submit its response by 10.03.2024.
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