SEMAC CONSULTANTS LIMITED (FORMERLY KNOWN AS REVATHI EQUIPMENT LIMITED) V. ASSESSMENT UNIT INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, MINISTRY OF FINANCE and THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-6(1)(1), BENGALURU

WP/32736/2024

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The case involves SEMAC Consultants Limited, which challenged the assessment order and related documents issued by the Income Tax Department for the assessment year 2022-23. The petitioner argued that they did not receive proper notice to participate in the assessment proceedings due to the notices being sent to an incorrect email address. The respondents acknowledged the discrepancy but maintained that the notices were sent to the address provided by the petitioner. The court found that the petitioner was not given a reasonable opportunity to participate in the proceedings and thus allowed the writ petition, quashing the assessment order and related documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 819441 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 15-01-2025
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: A SHANKAR
• Keywords: Assessment Order; Email address; Income Tax; Notice; Writ of Certiorari; Opportunity to Participate
• Section: 144; 142(1); 143(2); 144B

Judgement Text

" - 1 - NC: 2025:KHC:1330 WP No. 32736 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.G.PANDIT WRIT PETITION NO. 32736 OF 2024 (T-IT) BETWEEN: SEMAC CONSULTANTS LIMITED (FORMERLY KNOWN AS REVATHI EQUIPMENT LIMITED) (SUCCESSOR IN INTEREST FOR M/S. SEMAC CONSULTANTS PRIVATE LIMITED) REGISTERED UNDER THE COMPANIES ACT, 2013, REPRESENTED BY ITS CHIEF FINANCIAL OFFICER AGED ABOUT 56 YEARS, SON OF SRI.DEEPAK JAIN HAVING BRANCH OFFICE AT, SURYALAYA, SHANKARMUTT ROAD, SHANKARPURAM, BASAVANGUDI, BENGALURU-560004 …PETITIONER (BY SRI.A.SHANKAR, SR.COUNSEL FOR SRI.MADHUSUDHAN.U.A., ADVOCATE) AND: 1. ASSESSMENT UNIT INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, MINISTRY OF FINANCE, ROOM No.401, 2ND FLOOR, E-RAMP, JAWARLAL NEHRU STADIUM, DELHI-110 003 2. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-6(1)(1), BENGALURU, Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:1330 WP No. 32736 of 2024 BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560095 …RESPONDENTS (BY SRI.M.DILIP, ADVOCATE FOR R1 & R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) DIRECT IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE ASSESSMENT ORDER DATED 26.03.2024 PASSED UNDER SECTION 144 R.W.S 144B OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2022-23 BY THE RESPONDENT NO.1. BEARING DIN NO.ITBA/AST/S/144/2023-24/1063374872(1) HEREIN MARKED AS ANNEXURE - A1 AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT ORAL ORDER Learned counsel Sri.Dilip.M., accepts notice for respondents. 2. Heard the learned senior counsel Sri.A.Shankar for Sri.Madhusudhan.U.A., learned counsel for petitioner and learned counsel Sri.Dilip.M., for respondents. Perused the writ petition papers. 3. Learned senior counsel Sri.A.Shankar would submit that petitioner is before this Court questioning the - 3 - NC: 2025:KHC:1330 WP No. 32736 of 2024 assessment order dated 26.03.2024 passed under Section 144 read with Section 144B of the Income Tax Act, 1961 (for short, ‘1961 Act’) for the assessment year 2022-23 (Annexure-A1); computation sheet bearing No.ITBA/AST/S/622/2023-24/1063375253(1) dated 26.03.2024 (Annexure-A2); demand notice dated 26.03.2024 bearing No.ITBA/AST/S/156/2023- 24/1063375392(1) (Annexure-A3); penalty order dated 27.09.2024 bearing No.ITBA/PNL/F/270A/2024- 25/1069163754(1) (Annexure-A4); computation sheet dated 27.09.2024 bearing No.ITBA/PNL/S/270A/2023- 24/1063375149(1) (Annexure-A5); demand notice dated 27.09.2024 bearing No.ITBA/PNL/S/156/2024- 25/1069158391(1) (Annexure-A6); and notice dated 02.06.2023 bearing No.ITBA/AST/S/143(2)/2023- 24/1053505527(1) (Annexure-B). 4. Learned senior counsel for the petitioner would mainly contend that though the petitioner received notice issued under Section 143(2) dated 18.07.2023, has not - 4 - NC: 2025:KHC:1330 WP No. 32736 of 2024 received subsequent notices issued under Section 142(1) and 144(1) of 1961 Act. Learned senior counsel invites attention of this Court to proper e-mail address which is indicated in Annexure-P5. But, he submits that notices were sent to a wrong e-mail address indicated in Annexure-P2 i.e., ‘[e-mail]’. Since the notices were sent to wrong e-mail address, petitioner was not in a position to participate in the proceedings by filing objections. Thus, petitioner has no reasonable opportunity before the Assessing Authority. Therefore, it is prayed for an opportunity to participate in the proceedings before the first respondent. 5. Per contra, learned counsel Sri.Dilip.M., appearing for the respondents would contend that Annexures-P2 and P5 are of different assessment years and further he submits that notices were sent to the e-mail address furnished by the petitioner. However, he is not in a position to dispute the e-mail address indicated in Annexure-P5. Thus, he prays for passing appropriate order. - 5 - NC: 2025:KHC:1330 WP No. 32736 of 2024 6. Having heard the learned counsel appearing for the parties and taking note of the fact situation, I am of the view that petitioner ought to be given an opportunity from the stage of filing objections to Section 142(1) notice dated 26.12.2023. 7. Annexure-P2, notice indicates the following e- mail address - “[e-mail]” whereas Annexure-P5 indicates e-mail address as follows: “[e-mail]”. 8. Annexure-P5 is for the assessment year 2020- 2021 as well as assessment year 2022-23. The notice sent under Section 142(1) for the assessment year 2022-23 is apparently to a different e-mail address which does not belong to the petitioner, as submitted by learned senior counsel for the petitioner. Apparently, the notice must have been issued to a different e-mail, as such, petitioner has not received the notices subsequently. - 6 - NC: 2025:KHC:1330 WP No. 32736 of 2024 9. In the above peculiar facts and situation, I deem it appropriate to provide an opportunity to the petitioner to participate in the proceedings before the first respondent – Assessing Authority by filing objections to notice under Section 142(1) of 1961 Act dated 26.12.2023. Hence, the following: ORDER a) Writ petition is allowed. b) Assessment order dated 26.03.2024 passed under Section 144 read with Section 144B of the Income Tax Act, 1961 (for short, ‘1961 Act’) for the assessment year 2022-23 (Annexure-A1); computation sheet bearing No.ITBA/AST/S/622/2023-24/1063375253(1) dated 26.03.2024 (Annexure-A2); demand notice dated 26.03.2024 bearing No.ITBA/AST/S/156/2023- 24/1063375392(1) (Annexure-A3); penalty order dated 27.09.2024 bearing No.ITBA/PNL/F/270A/2024- 25/1069163754(1) (Annexure-A4); computation sheet dated 27.09.2024 bearing No.ITBA/PNL/S/270A/2023- - 7 - NC: 2025:KHC:1330 WP No. 32736 of 2024 24/1063375149(1) (Annexure-A5); demand notice dated 27.09.2024 bearing No.ITBA/PNL/S/156/2024- 25/1069158391(1) (Annexure-A6) and notice dated 02.06.2023 bearing No.ITBA/AST/S/143(2)/2023- 24/1053505527(1) (Annexure-B) are quashed. c) Liberty is reserved to the petitioner to file objections to notice under Section 142(1) of 1961 Act as and when the notice is sent to e-mail i.e., “[e-mail]”. Thereafter, first respondent – Assessing Authority is directed to proceed in accordance with law. d) All contentions of the parties are left open. Sd/- (S.G.PANDIT) JUDGE NC CT - SN List No.: 1 Sl No.: 18 "