In a recent ruling, a Division Bench of Justice Rajiv Shakhder and Justice Girish Kathpalia of Delhi High Court set aside the assessment order on grounds of income tax authorities issuing the Show Cause Notice (SCN) to an incorrect email address.
The petitioner Jyoti Narang filed the writ petition on grievance that the authorities violated her rights to principles of natural justice.
The record showed that the petitioner was issued SCN dated 09.05.2023 (SCN) proposing variation in income. Via the SCN, the petitioner was given time to file a response, albeit by 16.05.2023.
However, it appears that the notice was directed to an incorrect email address. The e-mail address to which the SCN was directed is “dadasumit75@gmail.com”. According to the petitioner, the correct email address is “hridaanfurnitures@gmail.com”.
The petitioner claimed that even in the return of income filed by her, the same email address is given i.e., “hridaanfurnitures@gmail.com”.
Consequently, the petitioner submitted that no opportunity to respond to the SCN was given, and therefore sought a personal hearing in the matter.
According to Sunil Agarwal, the Senior Standing Counsel representing the respondent/revenue, there are substantial points to be made on the merits of the case. However, those arguments will be presented once a response is filed.
The bench accepted the petitioner’s request for a chance to present their response and arguments on the issue. As a result, the High Court nullified the challenged assessment order and allowed the petitioner the opportunity to submit a response to the SCN (Show Cause Notice).
As a result, the penalty and demand notices issued on the same date, i.e., 23.05.2023, deemed invalid. The petitioner was instructed to submit their response to the SCN within the following four weeks.
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