Order and SCN are liable to be set aside when reply and documents filed by the Assessee with the Auditor are not taken into consideration

The Hon’ble Delhi High Court in the case of Samsung India Private Limited v. Union of India [W.P. (C) No. 7351 of 2024 dated May 21, 2024] allowed the writ petition and set aside the Impugned Order and Show Cause Notice on the ground that the reply and documents filed by the Assessee with the Auditor are not taken into consideration.

Facts:

Samsung India Electronics (P.) Ltd. (“the Petitioner”) has filed a writ petition against order dated April 27, 2024 (“the Impugned Order”) along with Show Cause Notice dated January 30, 2024 (“the Impugned SCN”) issued by the Revenue Department (“the Respondent”). The Petitioner is aggrieved by the manner in which the audit was conducted, and the satisfaction recorded by the proper officer for further proceeding based on the Audit Report. The Appellant further contended that the Impugned documents were unsigned by the Proper Officer and had not taken into consideration the documents furnished by the Petitioner.

Issue:

Whether Order and SCN liable to be set aside when reply and documents filed by the Assessee with Auditor are not taken into consideration?

Held:

The Hon’ble Delhi High Court in the case of W.P. (C) No. 7351 of 2024 held as under:

• Noted that, if the Proper Officer is of the view that further details are required, the said details could have been specifically sought from the Petitioner which has not been sought by the Respondent.
• Opined that, the Impugned Order is not sustainable for the reason that the Proper Officer has not taken into consideration the detailed reply along with the documents filed by the Petitioner as the Impugned Order just states that reply filed by the Petitioner is not substantial to counter the observations of the Auditor.
• Held that, the Impugned Order and SCN are set aside.

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