Delhi HC Sets Aside an Order Under IT Act Issued Before Deadline for SCN Reply

The Delhi High Court invalidated the assessment order passed under the Income Tax Act, 1961 citing it was issued before the deadline for filing a reply to the show cause notice (SCN) had passed.

The petitioner, Wonder Bricks, argued that the assessment order was flawed because it was issued prior to the designated date, despite the show cause notice allowing sufficient time for a response by May 5, 2023, at 15:49 hours. Sanjeev Menon, representing the respondent/revenue, stated that he had not received a copy of the case papers.

The Court granted a period for the respondent to provide instructions. It was emphasized that if instructions were received opposing the writ petition, a counter-affidavit would be submitted.

However, no counter-affidavit was filed, leaving the petitioner's claims unchallenged.

A Division Bench comprising Justice Rajiv Shakdher and Justice Girish Kathpalia noted that the assessment order was clearly passed before the deadline for filing a reply to the show cause notice had expired. The show cause notice was issued on March 31, 2023, granting the petitioner/assessee until May 5, 2023 (15:49 hours) to submit their reply. The impugned order, however, was issued on April 13, 2023. In light of these circumstances, the Court concluded that the most appropriate course of action would be to set aside the assessment order.

However, the Assessing Officer (AO) is ordered to issue a fresh assessment order, ensuring compliance with the law. The Court emphasized that to expedite the proceedings, the petitioner/assessee should submit their reply to the show cause notice dated March 31, 2023, within four weeks of receiving a copy of the Court's recent order.

Case Title	Wonder Bricks Vs PCIT
Citation	W.P.(C) 11687/2023 & CM APPL. 45616/2023
Date	03.10.2023
Petitioner	Mr Pramod Kumar Agarwal
Respondent	Mr Sanjeev Menon
Delhi High Court	Read Order

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