Practice Of Not Responding To Request Of Adjournment, To Take Matter Up At Anytime, When AO Deems Fit Is Not Endorsable: Gujarat High Court

The Gujarat High Court has held that the practice of not responding to the request for adjournment and thereafter taking the matter up at any time when the Assessing Officer deems it appropriate was not endorsable.

The division bench of Justices Sonia Gokani and Sandeep N. Bhat ruled that the order of 148A(d) and issuance of notice under Section 148 of the Income Tax Act merited review. Both need to be quashed. The matter goes back to the stage of considering the reply filed on 25.3.2022.

The reply that is filed by the petitioner or assessee before the Assessing Officer has not been taken into consideration at the time of passing the order under Section 148A(d) of the Income Tax Act.

The show-cause notice under Section 148A(b) of the Act, dated 10.3.2022 was issued to the assessee, which filed the application on 17.3.2022 and sought an adjournment for a period of seven days so that it could prepare the details. The reply had been filed on 25.3.2022. According to the Assessing Officer, the assessee has failed to file the additional details for more than fifteen days.

The court has noted that once there is a request for an adjournment if rejection comes, it should be clear and with proper reasons. If any time is required to be granted, there shall be a specific date that should be conveyed to the assessee. Here, it appears that being aware of the request for adjournment, the Assessing Officer chose not to accede to such a request and then unilaterally took up the matter on 31.3.2022, further noting that more than two weeks had elapsed from the time of issuing the notice.

The court has held that the assessee has no access directly to the Assessing Officer and he would be completely clueless as to what the date is on which the matter is to be next taken. Either there shall be a specific adjournment or specific order that requires communication. The bare minimum that can be done is to send such communication via e-mail or another electronic medium and then proceed with the matter.

Case Title: Shree Siddhi Foods Versus ACIT [R/SPECIAL CIVIL APPLICATION NO. 9257 of 2022]

Case Citation: 2023 Livelaw (Guj) 32

Date: 31/01/2023

Counsel For Petitioner: SN Divatia

Counsel For Respondent: Varun K. Patel

Click Here To Read The Order