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*_FORM DRC-01 Summary Demand notice is not substitute of Show Cause Notice: Matter listed in Jharkhand High Court_*

*In the Favour of Taxpayer*


The proper officer issued FORM DRC-01 without mentioning the grounds of the notice. Neither the summary issued by the department mentioned any grounds or details based upon which allegations were put. Whereas the taxpayer has filed the writ mentioning that in the darkness of not knowing the grounds of allegation, he is being denied the proper opportunity to defend the case. On the counter, the department submitted that since DRC-01 is an electronic form, they presumed that there was no need to upload the detailed grounds. The matter has been admitted by the H’ble Jharkhand High Court and pending for decision.  

*Our View*

The issue has been rightly raised by the taxpayer as section 75(7) prescribes that the department can issue further notice or summary on the grounds other than those already given in FORM DRC-01. But since the department has not mentioned any grounds or detailed allegation, the taxpayer is kept in dark which denies him proper opportunity.

Further this has been a practice adopted by the tax authorities to go beyond the law and issue notices/orders without providing appropriate information to the defendant. Under these circumstances, if the H’ble Court decides the matter in favour of the taxpayer, the matter will go a long way in correcting the practices being adopted by several tax authorities across the country.  

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