Reply Disregarded

This issue has frequently been raised by numerous businessmen and tax professionals, expressing that orders have been issued without due consideration of their responses. When appealing against such orders, the following case laws can be referenced:

1. Madras High Court

Bhagyam Exports (2024)
Where assessment order issued to assessee did not discuss reply to show cause notice made by assessee or record any findings in relation thereto, therefore same was to be quashed and matter was remanded for reconsideration. ARR

2. Andhra Pradesh

PBL Transport Corporation Pvt. Ltd.
ARR: Where assessee filed reply to discrepancy notice served on assessee in respect of audit but same was not considered while finalizing findings of audit, final Audit Report was in violation of principles of natural justice and, hence, to be quashed. 2.2 Varshman Gold Section 65(3): Clear 15 working days gap between date of receipt of notice and date of finalization of audit is needed. Where a notice for audit was uploaded on 14-9-2023 for which assessee gave reply on 28-9-2023 and same reached authority on 3-10-2023 but without considering response of assessee, audit was already finalized on 29-9-2023, audit report was finalized within statutory notice period and, hence, same was to be set aside. ARR

3. Delhi High Court

3.1 Jamna Auto Industries Ltd. (2024)
ARR: Where a Detailed Reply was submitted furnishing reply to each and every observation but the Demand Order was issued on 30-Dec-2023 without considering the reply rejecting on single line that "the reply was incomplete in nature due to lack of supporting documents to substantiate their claim and no one appeared on the date of personal hearing," the order is set aside.

3.2 Ethos Limited (2024)
ARR: Where the order was passed dismissing the reply as unsatisfactory without proper consideration; The court found the order unsustainable as it did not adequately address the petitioner's response and failed to request further clarification or documents if necessary.