Writ petition dismissed as service of notice on email ID from previous return held valid; Assessee relegated to statutory appeal

Writ petition dismissed as service of notice on email ID from previous return held valid; Assessee relegated to statutory appeal

Issue

Whether a writ petition against an assessment order is maintainable on the ground of denial of natural justice (non-receipt of notice), when the notices were served on the email ID furnished by the assessee in the return of income for the preceding assessment year.

Facts

• Assessment Year: 2015-16.

• Petitioner’s Grievance: The assessee filed a writ petition challenging the assessment order, contending that it was passed without affording a proper opportunity to submit objections or a personal hearing.

• Mode of Service: The Revenue Department demonstrated that notices under Section 148 (reopening) and Section 142(1) (inquiry) were served to an email ID.

• Source of Email: This email ID was furnished by the assessee himself along with the returns submitted for the Assessment Year 2014-15 (the preceding year).

• Consistent Communication: It was noted that all subsequent notices were also sent to the same email ID, which the assessee had used in the return filed in response to the Section 148 notice.

Decision

• Valid Service: The High Court held that service of notice on the email address provided by the assessee in their return of income constitutes valid service under the Income Tax Act (Section 282 read with Rule 127).

• No Violation of Natural Justice: Since the notices were sent to the assessee’s own furnished email, the claim of lack of opportunity was rejected. The failure to check the email or receive a specific reminder does not invalidate the proceedings.

• Writ Not Maintainable: The Court ruled that no exceptional grounds existed to invoke the extraordinary writ jurisdiction under Article 226 of the Constitution.

• Statutory Remedy: The proper course for the assessee is to avail of the statutory remedy by filing an appeal before the Appellate Authority (Commissioner of Income Tax – Appeals).

• Outcome: The writ petition was dismissed in favour of the Revenue.

Key Takeaways

Email is Official: Information provided in the Income Tax Return, especially the email ID, is the official address for communication. Notices sent to the email ID from the last filed return are legally binding, even if the assessee has stopped using that email.

Writ vs. Appeal: High Courts generally do not entertain writ petitions against assessment orders if the grievance (like service of notice) can be factually disputed and resolved through the standard statutory appeal process.

Active Monitoring: Taxpayers must ensure that the email ID registered on the e-filing portal and mentioned in ITRs is active and monitored to avoid missing statutory deadlines.