GEOFIN COMTRADE LIMITED, V. THE ADDITIONAL\JOINT\DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX\INCOME TAX OFFICER,

WP(C)/12670/2022

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Geofin Comtrade Limited challenged the Ext.P12 order of assessment issued under the National Faceless Assessment scheme for the assessment year 2014-15. The petitioner argued that the subsequent notices (Exts.P8 and P10) were sent to an outdated email address, despite the correct email being updated in the Income Tax Department's portal. This led to the petitioner not participating in the proceedings, resulting in an assessment order being passed without their input. The court, upon reviewing the submissions and evidence, including the updated email address in the portal, found that the issuance of notices to an incorrect email address constituted a violation of the principles of natural justice, warranting the setting aside of the assessment order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 749751 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-01-2023
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: ABRAHAM JOSEPH MARKOSE; ABRAHAM MARKOS; ISAAC ALEXANDER JOSEPH MARKOS; SHARAD KODANTHARA
• Keywords: Assessment Order; E-mail notice; Violation of Principles of Natural Justice; National Faceless Assessment scheme
• Section: 148; 142(1); 143(2)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 13TH DAY OF JANUARY 2023 / 23RD POUSHA, 1944 WP(C) NO. 12670 OF 2022 PETITIONER: GEOFIN COMTRADE LIMITED, 10TH FLOOR, GEOJIT BNP PARIBAS BUILDING, 34/659-P,CIVIL LINE ROAD, PADIVATTOM, KOCHI-682 024, REPRESENTED BY ITS CHIEF MANAGER- LEGAL & COMPLIANCE AND AUTHORISED SIGNATORY, MR. SIMON MATHEWS. BY ADVS. V.ABRAHAM MARKOS JOSEPH MARKOSE (SR.) ABRAHAM JOSEPH MARKOS ISAAC THOMAS ALEXANDER JOSEPH MARKOS SHARAD JOSEPH KODANTHARA RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI-110 001. 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI-110 001. 3 DEPUTY COMMISSIONER OF INCOME TAX, DCIT CORPORATE CIRCLE-1(1), CENTRAL REVENUE BUILDING, I.S.PRESS ROAD, KOCHI-682 018. 4 THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S.PRESS ROAD, KOCHI-682 018. ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 12670 OF 2022 2 JUDGMENT The petitioner suffered Ext.P12 order of assessment for the assessment year 2014-15 under the National Faceless Assessment scheme. In respect of the assessment for the aforesaid assessment year, the petitioner was issued with Exts.P3 and P4 notices at its correct e-mail address and those notices were duly responded to. However, the subsequent notices namely, Exts.P8 and P10 were issued to the petitioner at a different e-mail address, which is not the current e-mail address of the petitioner. Resultantly, the petitioner did not take part in the proceedings and Ext.P12 order of assessment was therefore completed on the premise that the petitioner had not responded to Exts.P8 and P10 notices. 2. The learned Senior Counsel appearing for the petitioner would submit that the assessment proceedings are liable to be set aside in excise of jurisdiction under Article 226 of the Constitution of India as the said order is clearly issued in violation of principles of natural justice. It is submitted that there was no reason to issue Exts.P8 and P10 notices to an e- mail address, which is different from the e-mail address to WP(C) NO. 12670 OF 2022 3 which Exts.P3 and P4 notices were issued. It is submitted that since the proceedings have been completed in violation of principles of natural justice, the order of assessment is liable to be set aside notwithstanding the availability of any alternate remedy. 3. Heard the learned Standing Counsel appearing for the respondent Department also. The learned Standing Counsel appearing for the respondent Department submits that the notices in question are all system generated notices and they will normally be issued to the e-mail address of the petitioner available in the portal. 4. The learned Senior Counsel appearing for the petitioner, in reply, would submit that Ext.P1 would show that the correct e-mail address of the petitioner had been updated in the portal of the Income Tax Department. Having regard to the facts and circumstances of the case and having regard to the fact that Exts.P8 and P10 notices (which were issued subsequent to Exts.P3 and P4 notices) were issued to an address different from the address to which Exts.P3 and P4 notices were issued and having regard to the fact that the petitioner had duly replied to WP(C) NO. 12670 OF 2022 4 Exts.P3 and P4 notices, I am of the view that Ext.P12 order of assessment is liable to be set aside. It must be held that Ext.P12 was issued in violation of principles of natural justice. Accordingly, this writ petition is allowed. Ext.P12 order of assessment is set aside. The National Faceless Assessment Centre shall pass fresh orders of assessment after issuing notices to the following e-mail address of the petitioner:- [e-mail] [e-mail] The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE DK WP(C) NO. 12670 OF 2022 5 APPENDIX OF WP(C) 12670/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE COMPANY PROFILE APPEARING IN THE INCOME TAX PORTAL SHOWING THE ACCEPTANCE OF THE CHANGE IN THE INFORMATION. Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 26.12.2016 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE- 1(2), KOCHI FOR ASSESSMENT YEAR 2014-15. Exhibit P3 TRUE COPY OF THE NOTICE UNDER SECTION 148 DATED 31.3.2021 ISSUED BY THE 3RD RESPONDENT. Exhibit P4 TRUE COPY OF THE E-MAIL NOTICE DATED 14.9.2021 TOGETHER WITH NOTICE UNDER SECTION 143(2) FOR ASSESSMENT YEAR 2014-15 ISSUED BY THE 3RD RESPONDENT. Exhibit P5 TRUE COPY OF THE ASSESSMENT ORDER DATED 30.3.2022 FOR ASSESSMENT YEAR 2013-14. Exhibit P6 TRUE COPY OF THE E-MAIL TOGETHER WITH NOTICE U/S 142(1) DATED 10.11.2021 FOR AY 2014-15 ISSUED BY THE 3RD RESPONDENT. Exhibit P7 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGMENT DATED 10.11.2021 EVIDENCING FILING OF RESPONSE. Exhibit P8 TRUE COPY OF THE E-MAIL TOGETHER WITH NOTICE DATED 1.3.2022 ISSUED UNDER SECTION 142(1) BY THE 3RD RESPONDENT. Exhibit P9 TRUE COPY OF THE PETITIONER'S COMMUNICATION DATED 11.3.2022. Exhibit P10 TRUE COPY OF THE E-MAIL COMMUNICATION WP(C) NO. 12670 OF 2022 6 TOGETHER WITH SHOW CAUSE NOTICE DATED 25.3.2022 DOWNLOADED FROM THE PORTAL. Exhibit P11 TRUE COPY OF THE ASSESSMENT ORDER DATED 12.3.2021 AS SECOND ATTACHMENT REFERRED TO IN THE E-MAIL DATED 25.3.2022. Exhibit P12 TRUE COPY OF THE ASSESSMENT ORDER DATED 27.3.2022 FOR ASSESSMENT YEAR 2014-15 ISSUED BY THE 1ST RESPONDENT. Exhibit P13 TRUE COPY OF JUDGMENT DATED 6.12.2021 PASSED BY THIS HONOURABLE COURT IN WP(C) NO.11389 OF 2021. Exhibit P14 TRUE COPY OF THE JUDGMENT DATED 15.3.2022 PASSED BY THIS HONOURABLE COURT IN WP(C) NO.11540 OF 2021. "