2022 (2) TMI 231 - HC - Income Tax

Ex-parte assessment order - Inability and omission on the part of the petitioner to submit objections - HELD THAT - On account of the defunct / inoperative email address, the petitioner did not have any knowledge of any correspondence addressed by the respondents to the said email address which had become defunct and inoperative resulting in the petitioner not being in a position to suitably reply to any of the notices issued by the respondents and file his objections, documents, details, particulars etc., as sought for by the respondents. It is clear that on account of the inability and omission on the part of the petitioner to file his objections and produce documents etc., due to bonafide reasons, unavoidable circumstances and sufficient cause, the respondents have proceeded to pass the ex-parte impugned order, which deserves to be set aside and the matter be remitted back to the respondents for reconsideration afresh after giving one more opportunity to the petitioner.

Summary

Issues Involved:
Quashing of assessment order and related reliefs due to lack of communication and violation of natural justice.

Analysis:
The petitioner sought the quashing of the assessment order dated 19.04.2021 and other reliefs due to not receiving communication from the respondents. The petitioner's senior counsel highlighted that all correspondence, including notices, were sent to an email address provided by the petitioner, which later became defunct. Consequently, the petitioner was unaware of the notices and could not respond, leading to the ex-parte assessment order. The petitioner learned about the order only in November 2021, prompting the current petition. It was argued that the assessment order violated principles of natural justice by not providing a reasonable opportunity for the petitioner to respond. The counsel for the respondents contended that the petition lacked merit.

The court acknowledged that the petitioner's inability to receive correspondence due to the defunct email address prevented proper response to the notices. Recognizing the petitioner's genuine reasons for not being able to furnish objections and documents, the court concluded that the ex-parte order should be set aside. The court ordered the quashing of the assessment order and related penalty notices issued by the respondents. The matter was remitted back to the Assessment Officer for reconsideration, emphasizing the need to provide the petitioner with an opportunity to file objections, documents, and have a personal hearing in compliance with the law.

In conclusion, the High Court allowed the petition, quashed the assessment order and related notices, and directed the matter to be reconsidered by the Assessment Officer. The judgment emphasized the importance of affording the petitioner a fair opportunity to present objections and participate in the proceedings, ensuring compliance with principles of natural justice.