No Undue Delay in Submitting Reply to SCN: Himachal Pradesh HC sets aside u/s 143 (3) of Income Tax Act and remits matter back to PCIT\r\n\r\n

The Himachal Pradesh High Court nullified the Principal Commissioner of Income Tax's (PCIT) order under Section 143(3) of the Income Tax Act, 1961, citing improper handling of the petitioner’s timely response to a show-cause notice. M/s Ultra Drugs Private Limited, a pharmaceutical company, had filed its income tax return for the assessment year 2022-23 on 17.10.2022. \r

After multiple notices and replies, the petitioner attempted to submit a response to a show-cause notice on 24.03.2024 at 11:39 p.m., but the e-filing portal was closed by the Assessing Officer earlier that day. The Court, comprising Justices M. S. Ramachandra Rao and Jyotsna Rewal Dua, deemed the four-day response period insufficient and acknowledged that the petitioner faced no undue delay in submitting its reply. \r

The Court ordered the PCIT to reconsider the petitioner’s submission from 24.03.2024 and 25.03.2024 and to issue a reasoned order after granting the petitioner an opportunity for a hearing. Consequently, the writ petition was allowed, and the matter was remitted back to the PCIT for reevaluation.