2023 (6) TMI 356 - HC - Income Tax

Reopening of assessment - notice u/s 148A(b) to wrong Email ID - violation of principles of natural justice - notices are sent to (i) email ids that are no longer in use (ii) email ids of staff/accountants/chartered accountants who have created the profile of the assessee/file the income tax return and who are no longer in the employ/service of the assessee - HELD THAT - The causality is principles of natural justice as proper opportunity is often denied simply because notices are sent to (i) email ids that are no longer in use (ii) email ids of staff/accountants/chartered accountants who have created the profile of the assessee/file the income tax return and who are no longer in the employ/service of the assessee. It is high time that assessees as well as the officials of the department devote attention to this aspect of the matter. In the present case, this Court is of the considered view that the petitioner has not presented the facts in proper colour and has sought to take advantage of a technical mistake in the impugned order. This is wholly unappreciated and deprecated. The petitioner is hence put to terms and will remit a sum of Rupees One Lakh (Rs.1,00,000/-) to the Cancer Institute, Adayar, Chennai.

Summary

Issues involved:
The challenge in the writ petition is to proceedings for reassessment under the Income-Tax Act, 1961 for assessment year 2019-2020. The primary argument is violation of principles of natural justice due to notices sent to incorrect email ids.

Details of the Judgment:

Violation of Principles of Natural Justice:
The petitioner argued that the notice under Section 148A(b) was sent to an incorrect email id, leading to a lack of response. The petitioner emphasized a spelling error in the email id and maintained that no notice was sent to the correct gmail id. However, evidence presented by the Senior Standing Counsel revealed that the notice was indeed sent to the correct gmail id as per the records of the Income Tax Department.

Proper Credentials and Technology:
The Court highlighted the importance of providing accurate contact information, including email ids, to the Income-Tax Department in the digital age. It noted that confusion over multiple email ids can lead to denial of proper opportunity, emphasizing the need for assessees and officials to pay attention to this aspect.

Court's Decision:
The Court found that the petitioner misrepresented the facts and attempted to take advantage of a technical error in the order. As a result, the petitioner was directed to pay a sum of Rupees One Lakh to the Cancer Institute in Chennai. The writ petition was dismissed with costs, and connected miscellaneous petitions were closed.

This judgment underscores the significance of accurate communication details for assessees and the need for adherence to principles of natural justice in tax proceedings.