Calcutta HC Quashed Order Passed By Dept. Without Formally Rejecting Extension Request of Assessee

Case Details: Anurag Garodia v. Assistant Commissioner of State Tax - [2024] 160 taxmann.com 144 (Calcutta)

Judiciary and Counsel Details

• • Raja Basu Chowdhury, J.
  • Ankit Kanodia, Ms Megha Agarwal & Jitesh Sah for the Petitioner.
  • Anirban Ray, T.M. Siddique, Tanoy Chakraborty & Saptak Sanyal for the Respondent.

Facts of the Case

In the present case, a show-cause under Section 73(1) had been issued to petitioner. It didn’t file reply due to reasons of Durga Puja as it could not appropriately prepare its response. Therefore, it had applied for extension and sought for personal hearing. But the department passed order by ignoring the petitioner’s request. It filed writ petition against the demand order.

High Court Held

The Honorable high Court noted that as per proviso to sub-section (5) of Section 75, revenue can grant up to three extensions, but in instant case, revenue without formally rejecting petitioner’s application for extension, had passed the impugned order. The Court also noted that once petitioner had sought for an extension, revenue was obliged to consider application for extension and ought not to have passed the final order without appropriately considering petitioner’s application for extension.

Therefore, The Court held that the impugned order would stand vitiated on ground of violation of principles of natural justice and could not be sustained.