In a recent ruling, the Karnataka High Court remits the case back to the Section 148A(b) stage as the income tax notices are being sent to an outdated email address created by the former accountant of the assessee who is not in service.
The petitioner, Azeem Infinite Dwelling India Pvt Ltd challenged several orders and notices related to their tax assessment. Specifically, the petitioner contested the order issued under Section 148A(d) dated April 1, 2022, the notice under Section 148 of the same date, and subsequent assessment and penalty notices dated February 26, 2024.
Learn to Trade Globally: Register for the Programme Now
The issue was that these notices were sent to an email ID previously used by a former accountant who had left the company. The email address, gmaccounts@gminfinite.com , was no longer valid for the current management, which led to the petitioner not receiving any of the communications.
The petitioner submitted that this lapse in communication violated their right to a fair hearing, as they were not properly informed of the proceedings leading to the assessment order and penalties. This, they claimed, constituted a breach of the principles of natural justice, which necessitate that all parties involved in legal or quasi-legal proceedings are given a fair opportunity to respond to notices and provide input.
The counsel for the petitioner also submitted a memo that included a copy of the notice dated March 15, 2022, issued under Section 148A(b). This document confirmed that the petitioner had not been adequately notified due to the outdated email issue.
Learn to Trade Globally: Register for the Programme Now
Acknowledging the procedural flaw and the impact it had on the petitioner’s ability to participate in the proceedings, the bench of Justice S. Sunil Dutt Yadav decided that it would be just to revert the matter to the stage of Section 148A(b). This section deals with the issuance of a notice and requires the recipient to respond before any further action is taken. The court sets aside the orders and notices previously issued on April 1, 2022, and February 26, 2024, including the assessment order and penalty notices.
By remitting the case to the stage of Section 148A(b), the court has ensured that the petitioner will have the opportunity to properly address the notice and participate fully in the proceedings.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
