Facts of the Case

The Petitioner challenged the order dated 31 March 2022 passed under Section 148A(d) and the consequent notice issued under Section 148 for Assessment Year 2015–16.

The notice under Section 148A(b) dated 17 March 2022 granted eight days to file a reply. The Petitioner, a non-resident residing in the United States, received the notice at his Delhi address only on 24 March 2022. Due to his absence from India, he requested an extension of time via email on 27 March 2022.

However, the e-portal for filing reply was closed prematurely on 26 March 2022, even before expiry of the statutory period. The Assessing Officer proceeded to pass the order without considering the Petitioner’s request or reply.

Issues Involved

  1. Whether closing the e-portal before expiry of the statutory reply period violates Section 148A procedure.
  2. Whether failure to consider the assessee’s request for extension amounts to violation of natural justice.
  3. Whether communication via email constitutes valid mode of communication with the Assessing Officer.
  4. Whether reassessment proceedings can be sustained when adequate opportunity of hearing is denied.

Petitioner’s Arguments

  • The order was passed in violation of principles of natural justice due to lack of adequate opportunity.
  • The statutory period of eight days was not effectively granted as the portal was closed prematurely.
  • The Petitioner, being a non-resident, required reasonable time to access and collate records.
  • A valid request for extension was sent via email, which was not considered.
  • The Department had previously used email communication, making it a valid mode.
  • Reliance was placed on precedent holding that reasonable opportunity must be granted before passing order under Section 148A(d).

Respondent’s Arguments

  • The petition was not maintainable due to alleged suppression of facts regarding service of notice.
  • The notice was served earlier than claimed by the Petitioner.
  • The Assessing Officer did not consider the email as it was not uploaded on the e-portal.
  • As a practice, only portal submissions are reviewed for passing orders.

Court’s Findings

  • Even assuming earlier service, the statutory period had not expired when the portal was closed.
  • Premature closure of the portal was unjustified and illegal.
  • The Petitioner’s status as a non-resident required reasonable accommodation.
  • Email communication is a valid and recognized mode of interaction between assessee and department.
  • The Assessing Officer cannot ignore emails while simultaneously using email for official communication.
  • The order was passed in haste and in clear violation of principles of natural justice.

Court Order / Decision

  • The impugned order under Section 148A(d) and notice under Section 148 were quashed.
  • Matter remanded to the Assessing Officer for fresh adjudication.
  • Two weeks’ time granted to the Petitioner to file reply.
  • Assessing Officer directed to pass a fresh reasoned order within eight weeks.
  • E-portal to be reopened for enabling submission.
  • No opinion expressed on merits; rights of parties kept open.

Important Clarifications

  • Adequate opportunity of hearing is mandatory under Section 148A.
  • Closure of response mechanism before expiry of statutory time is impermissible.
  • Email communication is a valid mode and cannot be disregarded arbitrarily.
  • Non-resident assessees must be given reasonable time considering practical constraints.
  • Reassessment proceedings must strictly adhere to procedural safeguards.

 Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2022:DHC:2140-DB/MMH27042022CW60662022_112121.pdf

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