Madras HC Sets Aside Assessment Order Over Lack of Proper Notice to Non-Resident Taxpayer [Read Order]
Since the petitioner lived in the U.S., the court found it unreasonable to expect her to check the portal for a 2023-24 reassessment of a 2015-16 transaction.
![Madras HC Sets Aside Assessment Order Over Lack of Proper Notice to Non-Resident Taxpayer [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/Madras-HC-Aside-Assessment-Order-Proper-Notice-Non-Resident-Taxpayer-TAXSCAN.webp "Madras HC Sets Aside Assessment Order Over Lack of Proper Notice to Non-Resident Taxpayer [Read Order]")
The High Court of Madras , in a recent ruling, set aside an assessment order for violating natural justice, citing improper notice to a non-resident taxpayer. Madhubala Narayanasamy,petitioner-assessee, argued through counsel that her only income since 2005 was salary, with taxes deducted at source. Since no additional tax was due, she did not file returns and was unaware of the...
The High Court of Madras , in a recent ruling, set aside an assessment order for violating natural justice, citing improper notice to a non-resident taxpayer.
Madhubala Narayanasamy,petitioner-assessee, argued through counsel that her only income since 2005 was salary, with taxes deducted at source. Since no additional tax was due, she did not file returns and was unaware of the reassessment notice. However, the respondent passed the impugned order without granting her a hearing, violating natural justice principles.
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The counsel for the respondents stated that notices were sent through the online portal, email, and Registered Post with Acknowledgement Due(RPAD) before passing the impugned order. However, the email bounced back, and the RPAD notice was returned as "No such addressee." Thus, the petitioner could not claim lack of intimation.
In response, the petitioner's counsel argued that the assessee had been residing in the U.S. and could not have received the RPAD notice, requesting the impugned order be set aside.
Read More:Madras HC sets aside Cryptic Tax Assessment Order, Directs Reassessment with Fair Hearing
A single member bench comprising Krishnan Ramasamy(Justice) reviewed the submissions and records. The petitioner claimed the order was ex parte and violated natural justice as no hearing was given. The respondents argued that notices were sent via the online portal, email, and RPAD, but the email bounced back, and the RPAD notice was returned as "No such addressee."
Since the petitioner was not a regular taxpayer and lived abroad, checking the portal was unlikely, and the notices were not received. The reassessment was initiated in 2023-24 for a 2015-16 transaction, making it unreasonable to expect the petitioner to monitor the portal after eight years. The bench found the petitioner's ignorance genuine.
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In the interest of justice, the court set aside the impugned order for violating natural justice, subject to a payment of ₹7,500 to the Cancer Institute, Adyar, Chennai.
To Read the full text of the Order CLICK HERE
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