2023 (9) TMI 549 - HC - Income Tax

Reopening of assessment u/s 147 - notice was manually served to the petitioner - non filing of reply/returns - petitioner submitted that due to non-use of the e-mail facility, the password was forgotten and therefore, the petitioner was in continuous communication with the Department to reset the password to enable the petitioner to file a reply and after several rounds of communication with the Web Manager, the password was successfully reset only after time, the impugned Assessment Order came to be passed - HELD THAT - The case of the petitioner appears to be genuine inasmuch as the petitioner was unable to access the internet facility for uploading the reply/returns. Consequently, the petitioner also could not participate in any of the proceedings, which preceded the impugned Assessment Order dated 26.03.2022. Considering the fact that the password was reset only on 07.04.2022 and considering the fact that the impugned Assessment Order came to be passed on 26.03.2022, this is a fit case for exercising discretion under Article 226 of the Constitution of India in favour of the petitioner by quashing the impugned Assessment Order and to remit the case back to the respondents to allow the petitioner to upload the returns in response to the notice u/s 148. Respondents shall comply with the procedure in terms of the decision of G.K.N.Driveshafts (India) Ltd 2002 (11) TMI 7 - SUPREME COURT and thereafter dispose the objections if any of the petitioner for reopening the assessment for the Assessment Year 2014-2015 and to proceed accordingly.

Summary

Issues:
The petitioner challenged the Assessment Order for the Assessment Year 2014-2015, contending that the notice under Section 148 of the Income Tax Act was manually served, hindering their ability to participate in the proceedings and file necessary documents.

Details:
The petitioner had difficulty accessing the internet facility to reset the password for filing a reply and uploading returns in response to the notice under Section 148 of the IT Act. Despite efforts to reset the password, it was only successfully done after the Assessment Order had been passed.

The petitioner, a non-profit organization, sought an opportunity to participate in the proceedings afresh due to the technical challenges faced in accessing the required online platforms.

The Court acknowledged the genuine difficulty faced by the petitioner in accessing the internet for filing necessary documents, leading to their inability to participate in the proceedings prior to the Assessment Order being issued.

In light of the delayed password reset and the circumstances surrounding the petitioner's inability to engage in the proceedings, the Court exercised discretion under Article 226 of the Constitution of India. The Assessment Order was quashed, and the case was remitted back to the respondents for the petitioner to upload the required returns.

The Court directed the respondents to follow the procedure outlined in the decision of the Hon'ble Supreme Court in G.K.N.Driveshafts (India) Ltd. Vs. Income Tax Officer and Others, to address any objections from the petitioner regarding the assessment for the relevant year.

The respondents were instructed to facilitate the petitioner in uploading the necessary documents within thirty days of receiving a copy of the Court's order, and the Writ Petition was disposed of with no costs incurred.