HC Set Aside Order Since Proper Officer Didn’t Consider Detailed Reply of Assessee & Failed to Apply Mind

Case Details: Charu Overseas (P.) Ltd. v. Union of India - [2024] 161 taxmann.com 513 (Delhi)

Judiciary and Counsel Details

• • Sanjeev Sachdeva & Ravinder Dudeja, JJ.
  • Rajesh Jain, Virag Tiwari, Ramashish, & Ms Tanya Saraswat, Advs. for the Petitioner.
  • Sahaj Garg, SPC, Rajeev Aggarwal, ASC, Prateek Badhwar, Ms Shaguftha H. Badhwar, Ms Samridhi Vats, Advs. for the Respondent.

Facts of the Case

The petitioner received a show cause notice (SCN) from the department proposing a demand. It submitted detailed reply but the proper officer passed the order holding that the reply was incomplete, not supported by adequate documents, unclear and unsatisfactory and demand was confirmed. It filed writ petition against the order.

High Court Held

The Honorable High Court noted that the SCN contained separate headings for different allegations. The petitioner submitted detailed reply but the proper officer passed cryptic order without taking into consideration the reply and not even applied mind to consider reply. The Court also noted that any further details could have been specifically sought from the petitioner if the officer was of the view that any further details were required.

However, the record did not reflect that any such opportunity was given to the petitioner. Therefore, the Court held that the impugned order was to be set aside and the matter was remitted to the proper officer for re-adjudication.