Delhi HC set-asides faceless assessment order as time frame provided to assessee was too short to respond to SCN

  • Blog|News|Income Tax|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 26 October, 2021

Faceless assessment (Timeline to respond to SCN)

Case Details: Lamba Techno Flooring Solutions (P.) Ltd v. National Faceless Assessment Centre - [2021] 131 taxmann.com 172 (Delhi)

Judiciary and Counsel Details

    • Rajiv Shakdher and Talwant Singh, JJ.
    • Arun Dhiman, Adv. for the Petitioner. Ms. Vibhooti Malhotra, Sr. Standing Counsel, Ravi Prakash, Sr. Standing Counsel and Gurtejpal Singh, Adv. for the Respondent.

Facts of the Case

A show-cause notice-cum-draft assessment order was issued to the assessee and granted it barely two days to respond to the same. The assessee requested the grant of further time on account of the prevalence of the pandemic in the city. It also submitted that its Chartered Accountant and his family had been afflicted with coronavirus during the relevant period. Therefore, the timeline given for filing the response could not be adhered to.
However, revenue did not respond to the request made by the assessee and proceeded to pass the final assessment order. Aggrieved-assessee filed the instant appeal before the Delhi High Court.

High Court Held

The Delhi High Court held that the time frame provided to respond to the show cause notice-cum-draft assessment order was far too short, considering that the pandemic was raging in the city at that juncture.
Therefore, as prayed, the assessment order and consequential notices were set aside with liberty to pass a fresh assessment order and consequential orders after considering the reply filed by the assessee. Revenue, before passing the fresh assessment order, will accord a personal hearing to the authorized representative of the assessee. For this purpose, revenue will take recourse to the video conferencing mechanism.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied