Minimum 7 Days Time Has To Be Granted To The Taxpayer To File Reply To The Show Cause Notice: Delhi High Court

[23 May 2022] The Delhi High Court Bench of Justice Manmohan and Justice Dinesh Kumar Sharma has held that under Section 148A(b) of the Income Tax Act, a minimum time of seven days has to be granted to the assessee to file reply to the show cause notice. The department has issued a notice to petitioner under clause (b) of Section 148A of the Income Tax Act on 22nd March, 2022 on the ground that the petitioner had made cash deposits in its bank accounts but had not filed its Income Tax Return. The Petitioner was asked to furnish a reply to the notice on or before 25th March, 2022. The Petitioner duly replied to the said notice on 25th March, 2022 clearly explaining that all the cash deposited by the petitioner was received from the members of the society. The petitioner had also explained that KYC of all the members were properly done and books of accounts of the Petitioner were duly audited and were furnished to the Registrar of Companies.