Income tax Notice not sent on registered email Id hence not valid Karnatka High Court

By | January 11, 2024
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Income tax Notice not sent on registered email Id hence not valid Karnatka High Court

The contention raised on behalf of the petitioner deserves acceptance to the extent that notice ought to have been issued to the Email ID furnished at Annexure-‘D’ and not otherwise. The notices sent to the Email ID which is not that declared by the assessee has justifiably resulted in the assessee not having had an opportunity to respond to the notices.

( Contact Author on Taxheal@gmail.com)

HIGH COURT OF KARNATAKA

Sterling Urban Ventures P. Ltd.

v.

Assessment Unit, Income-tax Department, National Faceless Assessment Centre, Delhi*

S SUNIL DUTT YADAV, J.

WRIT PETITION NO. 7336 OF 2023 (T-IT)

MAY  25, 2023

Uday Holla, Sr. Adv. and Annamalai S. , Adv. for the Petitioner. M. Dilip, Adv. for the Respondent.

ORDER

 

  1. The petitioner has challenged the validity of the assessment order under section 143 (3) r/w 144B of the Income-tax Act, 1961, dated 19-12-2022 relating to assessment year 2021 at Annexure-Al as also the computation sheet at Annexure-A2, Notice of Demand at Annexure-A3 and has also assailed the penalty notice at Annexure-A4 as well as Annexures-A5 and A6.
  2. The principle contention raised by the petitioner is that the notices under section 142 (1) by the Income-tax Department have been addressed not to the Email ID which is registered with the Income-tax Department by the assessee. Attention is drawn to the personal details uploaded with the portal of Income-tax Department by the petitioner-assessee wherein the Email ID furnished are as follows:

Primary : accounts@sterlingdevelopers.com

Secondary: bsvc99@gmail.com

  1. It is submitted that all notices were sent to the Email ID of one Sudhakar (sudhakar@sterlingdevelopers.com). Attention is drawn to the notices at Annexures-Jl to J3. Accordingly, it is submitted that the eventual order passed under section 142 (1) has been passed without reference to any stand of the petitioner.
  2. Perused the assessment order. It contains details of several notices under section 142 (1) which had been issued. However, it is stated that there was no response by the assessee. The said details are detailed at Para 2 of the impugned order. As show cause notice having been issued and in light of no response, assessment order has been passed. The details furnished at Annexure-‘D’ are not in dispute. The contention raised on behalf of the petitioner deserves acceptance to the extent that notice ought to have been issued to the Email ID furnished at Annexure-‘D’ and not otherwise. The notices sent to the Email ID which is not that declared by the assessee has justifiably resulted in the assessee not having had an opportunity to respond to the notices.
  3. Accordingly, in light of the admitted facts and in light of lack of opportunity to the assessee to submit its reply to the notice issued under section 142 (1), Assessment Order at Annexure-Al as well as notice of computation sheet at Annexure-A2, Consequential Demand Notice at Annexure-A3 and Penalty Notices at Annexures-A4, A5 and A6 are set aside. The matter is remitted back to the respondent No. l and the same shall be resumed from the stage of reply to 142 (1) notice.
  4. The learned counsel for Revenue submits that reply may be submitted to 142 (1) notice dated 1-11-2022, 11-11-2022 and 23-11-2022, at Annexures-J1, J2 and J3 respectively.
  5. Accordingly, the petition is disposed off.