HC sets aside order as National Faceless Assessment Center didn’t consider objection filed in response to Show Cause Notice
KBB Nuts (P.) Ltd. v. NFAC Delhi – [2021] 127 taxmann.com 194 (Delhi)
Short Overview of the case:
Assessee filed return of income. Thereupon a notice was issued for scrutiny assessment. Such notice was followed by a notice under Section 142(1).
Assessee submitted that reply to said notice was filed via the designated portal. Assessee’s case was referred to Transfer Pricing Officer (TPO) under Section 92CA, and assessment proceedings were kept in abeyance.
Thereafter, a show-cause notice along with a draft assessment order was served on assessee.
Said show cause notice was received by it via e-mail on 20-04-2021.
Since the time for compliance was short, assessee filed an application via the e-portal, seeking a day’s adjournment till 22-04-2021.
Assessee submitted that since no response was received by it with respect to the request for adjournment, the objections to the aforementioned show-cause notice were filed on 22-04-2021.
Assessee submitted that there had been a breach of the principles of natural justice.
The objections filed on 22-04-2021 were not taken into account before passing the assessment order.
Revenue submitted that only because there was no formal response to the request for adjournment, assessee could not have assumed that the time to respond to the aforesaid show cause notice would not be extended.
On writ, the Delhi High Court set aside the order passed, and revenue was directed to pass a fresh assessment order after taking into account the objections filed by assessee.
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