The Delhi High Court has overturned a reassessment order, citing a breach of natural justice as the tax officer curtailed the taxpayer’s response window to less than half the statutory period, raising concerns over procedural safeguards in tax reassessment processes.
The Delhi High Court has set aside a reassessment order issued under Section 148A(d) of the Income Tax Act, saying the tax officer cut short the taxpayer’s response time in a way that breached natural justice. The court found that the assessee had been entitled to 30 days under the statutory framework, yet in practice was given little more than two weeks to respond before the order was made.
According to the report by Sag Infotech, the dispute arose from a notice issued on 22 February 2024 under Section 148A(b), which required a reply by 3 March. When the taxpayer sought more time, the assessing officer first pushed the matter to 8 March and then allowed only two further days, setting 10 March as the deadline. The taxpayer said its accountant was away and later asked by email for a 15-day extension, but the request was not accepted.
The court said the officer had no pressing reason to curtail the reply period and should have allowed more time in the interest of justice. It also noted that the taxpayer’s response had been uploaded before the reassessment order was passed on 18 March, meaning the officer could have considered it but chose not to do so. On that basis, the bench said the taxpayer’s right had been seriously prejudiced and directed the assessing officer to pass a fresh order after examining the reply.
The ruling fits into a broader run of Delhi High Court decisions scrutinising reassessment proceedings under the Income Tax Act. Taxmi has reported that the court has also examined whether notices were issued on borrowed satisfaction and without due consideration of material already on record, while other recent decisions covered missing approvals under Sections 148, 148A and 151, repeated reopening on the same grounds without fresh evidence, and the limits on issuing notices years after the relevant assessment. Together, those cases show the court taking a close view of procedural safeguards before tax assessments are reopened.
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