Lok Developers Registered Partnership Firm v. DCIT – [2023]
The assessee was a legally recognised partnership firm that acquired real estate. A show-cause notice for the proposed modification in the draught assessment order was given to the assessee during the reassessment proceedings. A penalty order pursuant to section 271(1)(c) was additionally passed.
The Assessing Officer (AO) sent the aforementioned directives to the secondary email address listed on the PAN card rather than the registered primary email address or the updated email address provided with the most recent Return of Income.
The assessee submitted a writ case to the Bombay High Court after noting that the AO failed to send the notice to the email address listed in the most recent income tax return.
When the assessee duly provided its principal email address, the High Court found that the AO plainly erred in sending a notice to the secondary email account. Sending an email to the backup email account is not prudent.
It is widely known that when the authorities cannot deliver any communications to the primary address, a secondary email account must be utilised as a backup or in such situations.
To avoid a jurisdictional error due to valid service, the AO should have sent the notice under Section 148 to both the principal address and the email address listed in the most recent Return of Income filed. Sending it on more than one email in a situation like the one in the present did not incur any costs and did not cause any harm to any parties.
As a result, it was necessary to disregard the notification sent to the assessee. The show cause notice for the proposed variation and the assessment order under section 144B were both dismissed, along with any related actions.
