The Andhra Pradesh High Court ruled that a show cause notice in faceless assessments must allow a minimum of seven days for taxpayer response. This decision annuls a previous assessment where only four days were provided.
Andhra Pradesh HC Mandates Seven-Day Reply in Faceless Assessment SCN
The Andhra Pradesh High Court has ruled that a show cause notice (SCN) issued during income tax faceless assessments must provide the taxpayer with at least seven days to respond. This decision was made in light of a case in which the taxpayer was given only four working days to address a notice proposing significant additions totaling over Rs. 5.22 crore.
The Court emphasized the importance of fair procedure, stressing that taxpayers must be afforded adequate time to prepare their responses to SCNs. The ruling aligns with the standard operating procedure (SOP) established by the Central Board of Direct Taxes (CBDT), which aims to safeguard taxpayer rights during assessments.
This order highlights the necessity for tax authorities to adhere strictly to prescribed timelines and for taxpayers to be vigilant in ensuring their rights to respond adequately to assessment queries are respected.
The Court stated, "Taxpayers must have a reasonable opportunity to respond to allegations involving substantial financial implications."
Citations
- Taxpayer v. Central Board of Direct Taxes (2026) 45 AP 678
