Assessee not expected to keep E-Portal of Income Tax Dept open all time to have Knowledge of what is being Done: Punjab and Haryana HC [Read Order]

The Punjab and Haryana High Court observed that the assessee is not expected to keep e-portal of the Income Tax Department open all time to have knowledge of what is being done.

It is a case where show cause notice was issued to the petitioner for initiating proceedings under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 by the Commissioner of Income Tax Exemptions, Chandigarh, but the said notice was not sent on the petitioner’s email or otherwise and was only reflected on the e-portal of the Department.

Thereafter, two reminders in respect to the aforesaid show cause notice were also published that too on the e-portal of the Department. However, it is an admitted position that the said notice and reminders were not served upon the petitioner as there is no e-mail sent by them.

The Department in the reply has submitted that communication of the notice electronically would also include communication of notice by placing it on e-portal. The counsel for the Revenue also submitted that as the petitioner had submitted his form himself on the said e-portal, a presumption can be drawn that he was having knowledge of the notice/reminders which were placed on the e-portal as there was no requirement of submitting notice personally through e-mail or otherwise.

A Division Bench of Justices Sanjeev Prakash Sharma and Sudeepti Sharma observed that “In view of the above, it is essential that before any action is taken, a communication of the notice must be in terms of the provisions as enumerated hereinabove. The provisions do not mention of communication to be “presumed” by placing notice on the e-portal. A pragmatic view has to be adopted always in these circumstances. An individual or a Company is not expected to keep the e-portal of the Department open all the time so as to have knowledge of what the Department is supposed to be doing with regard to the submissions of forms etc. The principles of natural justice are inherent in the income tax provisions and the same are required to be necessarily followed.”

“Having noticed as above, this Court is of the firm view that the petitioner has not been given sufficient opportunity to put up his pleas with regard to the proceedings under Section 12A(1)(ac)(iii) of the Income Tax Act and as he was not served with any notice. Therefore, he would be entitled to file his reply and the Department would of course be entitled to examine the same and pass a fresh order thereafter” the Court concluded.

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