Madhubala Narayanasamy Vs ITO (Madras High Court)
Non Resident taxpayer cannot be expected to monitor the online tax portal after eight years- Madras HC Sets Aside Income Tax Assessment Order Due to Improper Notice
In the case of Madhubala Narayanasamy Vs ITO, the Madras High Court addressed a writ petition challenging an assessment order passed under Section 143(3) read with Section 114 of the Income Tax Act for the assessment year 2015-16. The petitioner, a non-resident taxpayer residing in the USA, argued that she was unaware of the reassessment proceedings as she did not receive any notice. The Income Tax Department, however, contended that notices were served via multiple channels, including the online portal, email, and registered post. Despite these efforts, the email bounced back, and the registered post was returned with the remark “No such addressee.”
The court observed that the petitioner could not reasonably be expected to monitor the online tax portal after eight years, especially as she was not a regular taxpayer. Given the lack of effective communication and the petitioner’s genuine inability to respond, the court held that the assessment order was passed in violation of natural justice principles. Consequently, the court set aside the impugned order, subject to the petitioner making a charitable payment of ₹7,500 to the Cancer Institute in Chennai. The respondent was directed to issue a fresh notice, ensuring sufficient opportunity for the petitioner to present her case.
