Merely 3 Days Time granted to reply against Show Cause notice u/s 148A: HC sets aside order passed

A notice was issued to Assessee under Section 148A(b) of the Income Tax Act, 1961 (for short ‘the Act’) dated 23rd March 2022 and the order passed under Section 148A(d) of the Act dated 30th March 2022 for the Assessment Year 2018-19.

Learned counsel for the Petitioner states that only three days’ time was granted to the Petitioner to respond as against the mandatory statutory period of at least seven days. He further states that though the annexure annexed with the notice granted the Petitioner eight days’ time to respond, yet the e-filing submission portal was closed on 26^th March 2022 itself in violation of the statutory mandate of Section 148A (b) of the Act.

Learned Counsel for the Petitioner relies on the decision of this Court in Shri Sai Co-operative Thrift and Credit Society Ltd Versus ITO, Ward 43-6 [W.P.(C) No.7385/2022], wherein it has been held that under Section 148A(b) of the Act, a minimum time of seven days has to be granted to the Assessee to file its reply to the show cause notice.

Consequently, the impugned order passed under Section 148A(d) of the Act dated 30th March, 2022 for the Assessment Year 2018-19 was set aside by the High Court and the Assessing Officer was directed to pass a fresh reasoned order in accordance with law after considering the reply of the Petitioner, which is directed to be filed within a week.

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