Bird Worldwide Flight Services (W.P.(C) 7944/2022 & CPPL. 24194/2022)

 

Facts:

1. The petitioner received the initial notice under 148A(b) of the Act on 18th May, 2022.

 

2. However, the material forming the basis of allegation of escapement of income was served on the Petitioner only on 19th July, 2022 with a direction to respond by 21st July, 2022.

 

3. The petitioner contended that a period of two weeks would be granted to the Assessee to file the response under Section 148A(b) of the Act and the same shall be reckoned from the date on which the ‘Information’ and the ‘Material’ forming the basis of purported action, is served on the Assessee.

 

4. The Petitioner filed for an adjournment on 21st July, 2022 for additional ten days, yet the reply was filed within the additional time on 26th July, 2022.

 

5. However AO passed order U/S 148A.

 

Hon. Delhi HC held as below:

1. Section 148A(b) of the Act permits the Assessing Officer to suo moto provide up to thirty days’ period to an assessee to respond to the show cause notice issued under Section 148A(b) of the Act, which period may in fact be further extended upon an application made by the Assessee in this behalf.

 

2. The petitioner has a right to get adequate time under Section 148A of the Act to respond to the show cause notice.

 

3. The order is quashed and a direction is issued to the AO to re-consider the matter.