FACTS OF THE CASE

The present writ petition pertains to Assessment Year 2013–14 wherein the petitioner challenged the assessment order dated 25.05.2023. The grievance raised was that statutory notices issued under Section 142(1) of the Income Tax Act and the subsequent show-cause notice were not sent to the correct registered email address of the petitioner.

It was contended that the petitioner became aware of these notices only upon checking the portal on 25.05.2023, by which time the assessment order had already been passed. Additionally, the time granted to respond to the show-cause notice was less than the minimum reasonable period.

 ISSUES INVOLVED

  1. Whether failure to send notices to the correct email address constitutes a violation of principles of natural justice.
  2. Whether granting less than the minimum reasonable time (seven days) to respond to a show-cause notice invalidates the assessment proceedings.

 PETITIONER’S ARGUMENTS

  • The notices dated 26.04.2023 and 12.05.2023 were sent to an incorrect email address instead of the registered email.
  • The petitioner was not given adequate opportunity to respond.
  • Only a short time window (till 17.05.2023) was provided, violating procedural fairness.
  • Reliance was placed on Indo Laminates Pvt. Ltd. vs Assessment Unit, Income Tax Department & Ors. to assert that at least seven days’ time must be granted.

 RESPONDENT’S ARGUMENTS

  • The Revenue chose to argue the matter based on the existing record without filing a counter-affidavit.
  • No substantial rebuttal was made against the contention regarding insufficient time.

 COURT ORDER / FINDINGS

  • The Delhi High Court set aside the assessment order dated 25.05.2023.
  • The Court held that the show-cause notice failed to provide a minimum of seven days for response, thereby violating principles of natural justice.
  • The petitioner was granted two weeks to file responses to the notices.
  • The Assessing Officer was directed to reopen the portal to facilitate filing of replies.
  • Liberty was granted to the Assessing Officer to pass a fresh assessment order after considering the petitioner’s response.

 IMPORTANT CLARIFICATION BY COURT

  • Even without conclusively deciding on the issue of incorrect email service, the Court emphasized that insufficient response time alone is sufficient to vitiate the assessment order.
  • Minimum reasonable opportunity (at least seven days) is mandatory in compliance with natural justice.

Link to download the order - https://delhihighcourt.nic.in/app/showFileJudgment/RAS05072023CW88702023_224549.pdf

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