HC Quashes Reassessment for Wrong Email Service, Allows De Novo Hearing

The petitioner filed a return for AY 2018–19 declaring an income of Rs. 84,380. A notice under Section 148A(b) was issued on 19.03.2022, but was sent to the wrong email address instead of the petitioner’s correct and updated email ID. As a result, the petitioner did not receive the show-cause notice and could not file a reply. The impugned order under Section 148A(d) dated 28.03.2022 and the notice under Section 148 dated 29.03.2022 were challenged before the High Court on the ground of violation of natural justice.

Main Issue:

Whether the reassessment proceedings initiated under Sections 148A(d) and 148 are valid when the initial show-cause notice was never served to the correct email registered with the Income Tax Department.

HC’s Decision:

The High Court noted that although the petitioner’s correct email address was used earlier by CPC for sending the intimation under Section 143(1), it was not updated in the ITBA system. The AO thus issued the notice under Section 148A(b) to the wrong email, leading to non-receipt by the petitioner. Recognizing this as a violation of natural justice, the Court quashed the impugned order and reassessment notice and remanded the matter back to the AO. The AO was directed to serve a fresh notice to the correct email ID, provide an opportunity of hearing, and thereafter pass a de novo order under Section 148A(d) within 12 weeks.

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