2022 (8) TMI 1230 - HC - Income Tax

Validity of assessment - violation of principle of natural justice by depriving her right to participate in the proceeding by receiving notices from time to time - HELD THAT - The interest of justice will be sub-served if the impugned assessment order dated 15th April, 2021 and subsequent penalty proceeding are set aside and the matter is remanded back to the assessing officer concerned to pass a fresh assessment order in accordance with law and by complying with the formalities required to be observed before passing the final assessment order. All notices required to be served under the law shall be served upon the chartered accountant of the petitioner s at his official registered e-mail address. No unnecessary adjournment should be granted to the petitioner and assessment order should be completed expeditiously.

Summary

Issues Involved:
Violation of principle of natural justice in assessment proceedings due to non-receipt of notices under Income Tax Act, 1961.

Analysis:
The petitioner filed a writ petition challenging the assessment order dated 15th April, 2021 for the assessment year 2017-18, alleging a violation of the principle of natural justice. The petitioner contended that they were not served with notices under Section 143(2) of the Income Tax Act, 1961 dated 7th January, 2020, notice under Section 142(1) dated 9th February, 2021, or any show cause notice dated 24th February, 2021. The respondent authority claimed that these notices were issued to a different email address due to a technical fault in the department's portal. However, it was established that the petitioner did not receive these notices at their official email address, resulting in their inability to participate in the assessment proceedings, thus violating the principle of natural justice.

The learned advocate for the respondent authority admitted the failure of notice delivery but attributed it to a technical issue. The Court, after considering the submissions and facts, concluded that justice would be served by setting aside the impugned assessment order and subsequent penalty proceedings. The matter was remanded back to the assessing officer to conduct a fresh assessment order in compliance with the law. The Court directed that all necessary notices should be served to the petitioner's chartered accountant at their official registered email address to ensure proper participation in the proceedings. Emphasizing on expeditious completion of the assessment without unnecessary adjournments, the Court disposed of the writ petition (WPA No.12201 of 2021) with these directions and observations.