Sterling Urban Ventures Private Limited V. Assessment Unit, Income Tax Department, National Faceless Assessment Centre and Deputy/Assistant Commissioner of Income Tax, Circle 6(1)(1)

WP/7336/2023

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Sterling Urban Ventures Private Limited filed a writ petition challenging the assessment order and related notices issued by the Income Tax Department for the assessment year 2021-22. The petitioner contended that the notices under Section 142(1) were not sent to the correct email addresses registered with the Income Tax Department, leading to a lack of opportunity to respond. The court found that the notices were indeed sent to an incorrect email, which justified the petitioner's claim of not having had a fair opportunity to contest the assessments. Consequently, the court set aside all related notices and orders and remitted the matter back to the respondent for further proceedings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 687807 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 25-05-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: UDAY HOLLA; ANNAMALAI S
• Keywords: Assessment Order; Email notification; Faceless assessment; Income Tax; Writ petition
• Section: 143(3); 142(1); 144B

Judgement Text

" - 1 - WP No. 7336 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF MAY, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 7336 OF 2023 (T-IT) BETWEEN: 1. STERLING URBAN VENTURES PRIVATE LIMITED, COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013 REPRESENTED BY ITS MANAGING DIRECTOR, SMT. SHWETA RAMANI SASTRI, W/O KIRAN JOHN, AGED ABOUT 39 YEARS, NO.8, PRESTIGE NEBULA, LEVEL-5, CUBBON ROAD, OPP TO IT OFFICE BUILDING, BENGALURU-560 001. … PETITIONER (BY SRI. UDAY HOLLA, SENIOR ADVOCATE FOR SRI ANNAMALAI S., ADVOCATE) AND: 1. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, REP. BY ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME-TAX/ INCOME-TAX OFFICER, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. Digitally signed by VIDYA G R Location: High Court of Karnataka - 2 - WP No. 7336 of 2023 2. THE DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 6(1)(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. … RESPONDENTS (BY SRI. M. DILIP., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) R.W.S. 144B OF THE ACT DTD 19.12.2022 BEARING DIN NO. ITBA/AST/S/143(3)/2022- 23/1048089133(1) FOR THE ASSESSMENT YEAR 2021-22 BY THE R-1 HEREIN MARKED AS ANNX-A1 AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has challenged the validity of the assessment order under Section 143 (3) r/w 144B of the Income Tax Act, 1961 dated 19.12.2022 relating to assessment year 2021 at Annexure-A1 as also the computation sheet at Annexure-A2, Notice of Demand at Annexure-A3 and has also assailed the penalty notice at Annexure-A4 as well as Annexure-A5 and A6. - 3 - WP No. 7336 of 2023 2. The principle contention raised by the petitioner is that the notices under Section 142 (1) by the Income Tax Department have been addressed not to the Email ID which is registered with the Income Tax Department by the assessee. Attention is drawn to the personal details uploaded with the portal of Income Tax Department by the petitioner-assessee wherein the Email ID furnished are as follows: Primary : [e-mail] Secondary : [e-mail] 3. It is submitted that all notices were sent to the Email ID of one Sudhakar ([e-mail]). Attention is drawn to the notices at Annexure-J1 to J3. Accordingly, it is submitted that the eventual order passed under Section 142 (1) has been passed without reference to any stand of the petitioner. 4. Perused the assessment order. It contains details of several notices under Section 142 (1) which had been - 4 - WP No. 7336 of 2023 issued. However, it is stated that there was no response by the assessee. The said details are detailed at Para 2 of the impugned order. As show-cause notice having been issued and in light of no response, assessment order has been passed. The details furnished at Annexure-'D' are not in dispute. The contention raised on behalf of the petitioner deserves acceptance to the extent that notice ought to have been issued to the Email ID furnished at Annexure-'D' and not otherwise. The notices sent to the Email ID which is not that declared by the assessee has justifiably resulted in the assessee not having had an opportunity to respond to the notices. 5. Accordingly, in light of the admitted facts and in light of lack of opportunity to the assessee to submit its reply to the notice issued under Section 142 (1), Assessment Order at Annexure-A1 as well as notice of computation sheet at Annexure-A2, Consequential Demand Notice at Annexure-A3 and Penalty Notices at Annexure-A4, A5 and A6 are set aside. The matter is - 5 - WP No. 7336 of 2023 remitted back to the respondent no.1 and the same shall be resumed from the stage of reply to 142 (1) notice. 6. The learned counsel for Revenue submits that reply may be submitted to 142 (1) notice dated 01.11.2022, 11.11.2022 and 23.11.2022 at Annexure-J1, J2 and J3 respectively. 7. Accordingly, the petition is disposed off. Sd/- JUDGE NP "