Delhi HC Cancels Assessment Order Issued Before the Deadline to Respond to an SCN Had Even Expired

The Delhi High Court has invalidated an assessment order that was issued before the deadline for the petitioner to respond to the show cause notice had expired.

Justices Rajiv Shakdher and Girish Kathpalia noted that the show cause notice was issued on March 31, 2023, providing the petitioner with a deadline of May 5, 2023 (15:49 hours) to submit a reply.

However, the disputed order was issued on April 13, 2023, prior to the specified date.

The petitioner/assessee challenged the Assessment Order (AO) passed on April 13, 2023, on the grounds that it was issued prematurely, despite the show cause notice issued on March 31, 2023, allowing sufficient time for a response by May 5, 2023 (15:49 hours).

The court granted the respondent/department’s counsel additional time to provide directions. It was clarified that if instructions were received opposing the writ petition, a counter-affidavit would be submitted.

Read Also: HC Refuses Assessment Order Due to Not Attached of Show-Cause Notice

However, no counter-affidavit was filed, leaving the petitioner’s claims unanswered.

Consequently, the court cancelled the assessment order and directed the assessee to submit a reply to the show cause notice dated March 31, 2023, within four weeks of receiving a copy of the court’s order in order to expedite the proceedings.