Basu Tea Pvt. Ltd. & Anr. Vs Union of India & Ors. (Calcutta High Court)
The Calcutta High Court examined the validity of reassessment proceedings initiated for the assessment year 2017–18, challenging an order passed under Section 148A(d) of the Income-tax Act, 1961 and the consequential notice issued under Section 148. The reassessment process began with a show-cause notice under Section 148A(b) dated March 8, 2024. As no reply was received from the assessee, the Assessing Officer proceeded to pass an order under Section 148A(d) and issued a reopening notice on April 8, 2024.
The assessee contended that it had no knowledge of the show-cause notice as all communications were either uploaded on the income-tax portal or sent to an email ID that had already been changed and was non-existent. It was argued that the change in email ID had been duly intimated to the Revenue authorities on October 31, 2023 and was also reflected in the latest income-tax return filed for assessment year 2023–24. Due to lack of proper service, the assessee submitted that it was deprived of an opportunity to respond and participate in the proceedings, resulting in a violation of principles of natural justice.
The Revenue relied on Rule 127 of the Income Tax Rules, 1962 and a CBDT notification dated September 12, 2019, asserting that uploading notices on the portal constitutes valid service and that the assessee was expected to remain vigilant. The Court accepted that portal upload is a recognised mode of service but observed that the Rules require additional steps for service to be considered complete, including sending a real-time alert to the assessee’s registered mobile number. The Revenue could not demonstrate whether such alert had been sent.
