Delhi High Court Upholds Validity of Assessment Order Sent to ROC-Registered Email
Delhi High Court Upholds Validity of Assessment Order Sent to ROC-Registered Email
Kalkajee Kraft Paper Pvt. Ltd. filed a writ petition challenging an assessment order under Section 143(3) read with Section 144B of the Income Tax Act, 1961. The petitioner argued that notices, including a penalty notice under Section 270A, were sent to an incorrect email address, thereby violating the principles of natural justice. The petitioner’s main averment was that its return for AY 2022–23 was selected for review, but the notices were sent to an old email address. The petitioner’s argument was contradicted and undermined when the petitioner himself replied to one of these notices despite claiming non-receipt.
The Hon’ble Delhi High Court, while dismissing the writ petition, found that the email used was the one registered with the Ministry of Corporate Affairs (ROC) and thus valid under Rule 127 of the Income Tax Rules. Rule 127 of the Income Tax Rules specifies how notices, summonses, requisitions, and orders must be sent to the assessee. The court further ruled that when the assessee has taken part in the proceedings, Section 292BB prohibits such objections.
Issue Raised: Whether the assessment notices sent to the email address available with the ROC are valid and whether such service complies with the requirements of the Income Tax Act and Rules?
Delhi High Court’s Decision: The Hon’ble Delhi High Court ruled that emails sent to the address listed on the MCA portal are legitimate forms of communication in accordance with Rule 127(2)(b)(iii) of the Income Tax Rules. The petitioner could not later argue that the notice was improperly served because it had already replied to it and had promised to provide more information, but had not done so. When there has been involvement in the assessment process, Section 292BB further prohibits such objections. The court dismissed the petition, finding no violation of natural justice, but gave the petitioner two weeks to pursue statutory remedies.
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