Assessment Orders Are Void If Notices Are Sent To The Wrong Email Address.

I. Foundational Requirement of Notice Service

The Crux: An adjudicatory process is invalid if the “jurisdictional notice” is not served to the correct address/email recorded in the taxpayer’s profile.

The Dispute

The assessee was hit with a high-pitched assessment order and multiple penalty notices under Sections 270A (under-reporting of income) and 272A (failure to answer questions/comply with notices).

Assessee’s Stance: They never received the notices. The Department used the email ankolataluk1515@gmail.com, while the correct registered email ID was vssgokarna@gmail.com.
Revenue’s Stance: They argued that the “faceless” system generated the notices and the assessee simply failed to participate despite the opportunity.

The Verdict

The Court ruled in favour of the Assessee, setting aside the orders based on these principles:

Natural Justice (Audi Alteram Partem): No person should be condemned unheard. If a notice is sent to the wrong destination, the “opportunity to be heard” is a myth.
Service is Mandatory: Service of notice under Section 143(2) is a jurisdictional requirement. Without valid service, any assessment order passed under Section 143(3) (or Section 270 of the 2025 Act) is legally unsustainable.
Restoration of Rights: The Court quashed the demand and penalty notices but allowed the Department to proceed from the notice stage, granting the assessee liberty to file a fresh reply.

II. Transition to the 2025 Act

Under the Income-tax Act, 2025:

Section 270 (Assessment): This replaces Section 143. It places even greater emphasis on technological safeguards.
Section 465 (Service of Notice): Consolidates the rules for digital service. It mandates that notices be sent to the Primary Email ID registered on the e-filing portal.
Procedural Safeguards: The 2025 Act introduces a requirement for “acknowledgment of receipt” or a digital log that proves the notice was successfully delivered to the correct account.

III. Strategic Takeaways for Taxpayers in 2026

Update Your Profile: In the age of faceless assessments, your Email ID and Mobile Number on the e-filing portal are your most important legal addresses. Ensure they are current and checked regularly.
The “Additional Notices” Tab: Often, notices are not sent via email but are only visible under the “Pending Actions > e-Proceedings” tab. In 2026, courts consider “portal availability” as service, provided the email intimation went to the right address.
Challenge Ex-parte Orders: If you discover a demand in your “Outstanding Demand” list for which you never received a notice, file a Writ Petition or a Rectification Application. Cite this judgment to prove that “incorrect email service” is a valid ground for quashing the order.
Penalty Protection: Penalties under Section 272A (now Section 465) are only valid if you “wilfully” failed to comply. If the notice never reached you due to an email error, the penalty cannot be sustained.

HIGH COURT OF KARNATAKA

Vyavasaya Seva Sahakari Sangh Ltd.

Assessment Unit, National Faceless Assessment Centre^*

MS. JYOTI M, J.

WRIT PETITION NO. 101431 OF 2026 (T-IT)

MARCH 27, 2026

S. Annamalai, Adv. for the Petitioner. M. Thirumalesh and Smt. Roopa Anavekar, Advs. for the Respondent.

ORDER

1. Sri.S.Annamalai., counsel for the petitioner and Sri.M.Thirumalesh along with Smt.Roopa Anavekar., counsel for the respondents have appeared in person.

2. Though the petition is listed for preliminary hearing, with consent, it is heard.

3. The Writ Petition is filed seeking the following prayers:

“i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the assessment order passed by the Respondent No.1 u/s 144 rws 144B dated 30/08/2022 bearing DIN and Notice No. ITBA/AST/S/144/2022-23/1045068226(1) for the AY 2020-21 herein marked as Annexure-A1.

(ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet issued by the Respondent No.1 dated 30.08.2022 bearing DIN and Document No.ITBA/AST/S/530/2022-23/1045068314(1) for the AY 2020-21 herein marked as Annexure-A2.

(iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice issued u/s 156 by the Respondent No.1 dated 30.08.2022 bearing DIN and Notice No. ITBA/AST/S/156/2022-23/1045068262(1) for the AY 2020-21 herein marked as Annexure-A3.

(iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order passed u/s 270A by the Respondent No.1 dated 16/03/2023 bearing DIN No.ITBA/PNL/F/270A/2022-23/1050863415(1) for AY 2020-21 herein marked as Annexure-A4.

(v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet issued by the Respondent No.1 dated 16.03.2023 bearing DIN and Order No.ITBA/PNL/S/270A/2022-23/1045068718(1) for AY 2020-21 herein marked as Annexure-A5.

(vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice issued u/s 156 by the Respondent No.1 dated 16/03/2023 bearing DIN and Notice No.ITBA/PNL/S/156/2022-23/1050859005(1) for the AY 2020-21 herein marked as Annexure-A6.

(vii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order passed u/s

272A(1)(d) by the Respondent No.2 dated 29/08/2022 bearing DIN No.ITBA/PNL/F/272A(1)(d)/2022-23/1044999260(1) for the AY 2020-21 herein marked as Annexure-A7.

(viii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet issued by the Respondent No.2 dated 29/08/2023 bearing DIN and Order No. ITBA/PNL/S/272A(1)(d)_FL/2021-22/1041757001(1) for the AY 2020-21 herein marked as Annexure-A8.

(ix) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice issued u/s 156 by the Respondent No.2 dated 29/08/2022 bearing DIN and Notice No.ITBA/PNL/S/156/2022-23/1044999197(1) for the AY 2020-21 herein marked as Annexure-A9.

(x) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice u/s 270A vide dated 30/08/2022 issued by the Respondent No.1 bearing DIN:ITBA/PNL/S/270A/2022-23/1045068718(1), for the AY 2020-21 herein marked as Annexure A10.

(xi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice u/s 272A(1)(d) vide dated 27/03/2022 issued by the Respondent No.1 bearing DIN: ITBA/PNL/S/272A(1)(d)_FL/2021-22/1041757001(1), for the AY 2020-21 herein marked as Annexure A11.

(xii) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.”

4. Heard the counsel for the petitioner and the counsel for the respondents. Perused the material on record.

5. Counsel for the petitioner, Sri S. Annamalai, submits that in respect of penalty proceedings initiated under Section 272A(1)(d) of the Income Tax Act, 1961, the notices were issued to an incorrect email ID, namely ankolataluk1515@gmail.com, which does not belong to the petitioner. It is contended that the petitioner’s correct email ID is vssgokarna@gmail.com. On account of the notices being sent to the wrong email address, the petitioner did not know of the proceedings and was thereby prevented from submitting a reply. It is further submitted that denial of an opportunity to respond amounts to a violation of principles of natural justice. Hence, the petitioner seeks an opportunity to submit a reply to the notice.

6. Per contra, counsel for the respondents, Sri M. Thirumalesh, justifies the action of the Department and submits that sufficient opportunity had been granted to the petitioner. However, the petitioner failed to avail the same. Therefore, it is contended that the writ petition is devoid of merit and liable to be dismissed.

7. Upon hearing the rival submissions and on careful perusal of the material available on record, this Court finds that the principal grievance of the petitioner is that notices pertaining to the penalty proceedings were not served to the correct email address.

It is not in dispute that the notices were sent to ankolataluk1515@gmail.com, whereas the petitioner asserts that his correct email ID is vssgokarna@gmail.com. In the absence of proper service of notice, the petitioner was deprived of an effective opportunity to participate in the proceedings.

Service of notice is a foundational requirement in any adjudicatory process. When notices are sent to an incorrect email ID, it cannot be said that a reasonable opportunity has been afforded. Such action results in a violation of the principles of natural justice.

In view of the above, this Court is of the considered opinion that interference under Article 226 of the Constitution of India is warranted.

8. Accordingly, the writ petition is allowed in part. The impugned proceedings, namely Annexures-A1 to A11, are hereby quashed. The petitioner is granted liberty to submit a reply to the notice dated 29.06.2021 issued under Section 143(2) of the Income Tax Act, 1961. Upon receipt of such a reply, the respondent Department shall consider the same and pass appropriate orders in accordance with law, after affording a reasonable opportunity of hearing to the petitioner. All contentions of the parties are kept open.

9. The writ petition stands disposed of accordingly.