Neha Bhawsingka Vs Union of India & Ors. (Calcutta High Court)
In Neha Bhawsingka Vs Union of India & Ors., the Calcutta High Court invalidated an assessment order dated March 12, 2024, along with related demand and penalty notices. The petitioner, engaged in the trading of ferrous and non-ferrous materials, challenged the order citing procedural lapses and non-compliance with statutory requirements. Notices issued under Sections 143(2) and 142(1) of the Income Tax Act were sent to an unregistered email address instead of the petitioner’s registered email. Consequently, the petitioner was denied the opportunity to respond, violating principles of natural justice. The ex-parte assessment classified ₹7.18 crore in purchases as non-genuine and ₹84.68 lakh as unexplained credits, raising a tax liability of ₹4.63 crore.
The court observed that adherence to Section 282 of the Income Tax Act, requiring service to the registered email, was mandatory. Past communications to the correct email established a legitimate expectation for consistency. The failure to serve notices correctly and the subsequent reliance on an unregistered email address rendered the assessment order void. Referring to precedents, the court emphasized that valid service of notices is a jurisdictional prerequisite, underscoring the importance of procedural compliance in tax assessments.
