Show Cause Notice Mailed To The Wrong Email Address: Delhi High Court Remands The Matter To The Assessing Officer For A Fresh Decision
The Delhi High Court, consisting of Justice Manmohan and Justice Manmeet Preetam Singh Arora, has remanded the matter to the assessing officer for a fresh decision as the department mailed the show cause notice to the wrong email address.The petitioner/assessee submitted that the department alleged that the petitioner's claim for IGST Refund was incorrect and, hence, the amount "is...
The Delhi High Court, consisting of Justice Manmohan and Justice Manmeet Preetam Singh Arora, has remanded the matter to the assessing officer for a fresh decision as the department mailed the show cause notice to the wrong email address.
The petitioner/assessee submitted that the department alleged that the petitioner's claim for IGST Refund was incorrect and, hence, the amount "is required to be disallowed." An IGST refund, being a balance sheet item, is not a claim made in the profit and loss account and it cannot be termed as "income chargeable to tax having escaped assessment". Hence, in terms of Section 147 of the Income Tax Act as well as the first proviso to Section 148, the show cause notice was patently illegal.
The petitioner stated that the order passed under section 148A (d) of the Income Tax Act and the notice issued under section 148 of the Income Tax Act were issued in gross violation of the principles of natural justice. The order does not even mention that the petitioner had filed an application seeking an adjournment so as to enable it to file a reply on merits.
The petitioner contended that the petitioner became aware of the show cause notice dated March 15, 2022 for the first time on March 24, 2022 as it was sent to the wrong email address. The order reeks of non-application of mind since the order records incorrect facts.
The department argued that because the petitioner did not have the opportunity to file a reply and the order under Section 148A(d) was not based on merits, the respondent has no objection to the matter being remanded back to the Assessing Officer for a new decision.
The court directed the petitioner to file its additional reply to the show cause notice issued under Section 148A (b) of the Income Tax Act within two weeks. The Assessing Officer was directed to decide the matter by way of a reasoned order in accordance with the law within eight weeks.
Case Title: M/s Schneider Electric India Pvt. Ltd. Versus ACIT
Citation: 2022 LiveLaw (Del) 545
Dated: 01.06.2022
Counsel For Appellant: Advocate Deepak Chopra
Counsel For Respondent: Advocate Puneet Rai