JAGARNATH CONSULTANTS PRIVATE LIMITED V. THE INCOME TAX OFFICER, WARD 1 (1), KOLKATA AND ORS.

WPA/18591/2024

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In the case of Jagarnath Consultants Private Limited vs. The Income Tax Officer, Ward 1(1), Kolkata & Ors., the petitioner contested the validity of a notice issued under Section 148 of the Income Tax Act for the assessment year 2014-15. The petitioner argued that despite updating their email address on the Income Tax Portal, the notice was sent to the old email address, resulting in a failure to receive and respond to the notice. The Income Tax department acknowledged the mistake but argued that the subsequent assessment order was valid as it was a speaking order under Section 148A(d). The court, referencing the principles of natural justice and the necessity of proper notice for valid assessment proceedings, set aside the assessment order and remanded the matter for re-assessment with proper notice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 771386 (HC-KOLKATA)
• Appeal Type: Others
• Pronouncement Date: 20-11-2024
• Assessment Year: misc
• Other Referred Cases: Sanatan Dharm Mahaveer Dal Vs CIT reported in 252 ITR 46
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: AMIT SHARMA
• Assessee Lawyers: SOUMITRA CHOW DHURY; AVRA MAZUMDER
• Keywords: Assessment Order; Natural Justice; Notice under section 148; Email update
• Section: 148; 148A(d)

Judgement Text

" 19 ss 20.11.2024 WPA 18591 of 2024 Jagarnath Consultants Private Limited Vs. The Income Tax Officer, Ward 1(1), Kolkata & Ors. Mr. Soumitra Chowdhury Mr. Avra Mazumder Ms. A. Das Mr. S. Bhowmik Mr. S. Das Ms. E. Dey Mr. S.N. Banerjee … … for the petitioner Mr. Amit Sharma … … for the respondents Learned counsel appearing for the petitioner submits that the petitioner has updated its email ID in the Income Tax Portal, which is [e-mail] on 21st September, 2014. After updation of the email ID, a notice under Section 148 of the Income Tax Act was issued to the petitioner for the assessment year 2014-15 in petitioner’s earlier email and as such the petitioner could not receive the email, owing to which could not respond to the notice under Section 148 of the Income Tax Act. Therefore, the petitioner prays for quashing of the notice dated 29th June, 2021. It has been further submitted by the learned counsel appearing for the petitioner that it is a well- settled trite under the law of taxation that issuance of a proper notice is a prerequisite for conducting a valid assessment. In other words, if the notice is not complete in all aspects such as non-adherence to the time limits prescribed, the same may vitiate an entire proceeding. Learned counsel appearing for the Income Tax department on written instructions submits that because of an inadvertent mistake, the notice was issued to the earlier email address of the petitioner but order passed under Section 148A(d) on 27th July, 2022 was a speaking order and as such the assessment order should not be cancelled and there is also an alternative remedy by way of an appeal by which the petitioner can agitate the assessment order. Written instructions filed by the learned counsel appearing for the Income Tax department is kept with the record. Heard learned counsel for both parties at length. An assessment order cannot be completed without issuance of a notice under Section 148 of the Act. As such the assessment order passed by the Assessing Officer without issuing proper notice under Section 148 of the Income Tax Act, the assessment proceedings as well as the assessment order passed by the Assessing Officer is bad in law and is set aside. In Sanatan Dharm Mahaveer Dal Vs CIT reported in 252 ITR 46 the Hon’ble Rajasthan High Court observed that any proceeding culminating in violation of principles of natural justice deserves to be set aside 2 as contra-legem. In the present case, without offering any comment on the merits of the case, this Court deems it fit to remand the matter to the Assessing Officer with a direction to accord a reasonable opportunity to the petitioner by serving notice on such registered email-id. Accordingly, the writ petition being WPA 18591 of 2024 is disposed of. All parties shall act on the server copy of this order duly downloaded from the official website of this Court. (Rajarshi Bharadwaj, J.) 3 "