Introduction: Delve into the recent ruling by the Madras High Court in the case of Jak Communications (P.) Ltd. v. Deputy Commercial Tax Officer [W.P. No. 35453 of 2023 dated December 19, 2023], where the court set aside an Assessment Order due to the failure of physical notice service. The court emphasized the importance of adhering to principles of natural justice, especially when the taxpayer remains unaware of notices uploaded solely on the web portal. Hon’ble Madras High Court disposed the writ petition thereby setting aside the Assessment Order passed by the Revenue Department in cases where the Notices were not served physically to the Assessee, even though the Notices were uploaded on the web portal.
Facts: Jak Communications (P.) Ltd. (Petitioner) filed a writ petition before the Hon’ble High Court against assessment order dated May 25, 2023 (Impugned Order) passed by the Revenue Department (Respondent) interalia, contending that, the Impugned Order was passed in violation of principles of natural justice as the Petitioner was unaware of the Notice issued due to Notices not being served physically. Also, it was contended that, neither opportunity for filing reply nor opportunity for personal hearing was granted to the Petitioner.
Issue: Whether Assessment Order is liable to be set aside when Notice is not served physically?
Held:
The Hon’ble Madras High Court in the case of W.P. No. 35453 of 2023 held as under:
- Noted that, the Notices and the Impugned Order were uploaded in the web portal in the “View Additional Notices and Orders” column and the same were not physically served to the Petitioner, due to which the Petitioner was unaware of the said notice.
- Opined that, the aforesaid reason provided by the Petitioner appears to be genuine.
- Further Opined that, no order can be passed without granting sufficient opportunity to the Petitioner. Hence, the Impugned Order is liable to be set aside.
- Held that, the Impugned Order is set aside and matter be remitted back to the Respondent for adjudication.
- Directed that, the Petitioner shall file the reply and the Respondent shall dispose the matter after granting sufficient opportunity to the Petitioner.
Conclusion: The Madras High Court’s ruling establishes a crucial precedent, emphasizing the necessity of physically serving notices to taxpayers. In cases where notices are solely uploaded on web portals, and the taxpayer remains unaware, the Assessment Order is deemed void. The decision reinforces the significance of providing adequate opportunity and maintaining procedural fairness in assessment proceedings.
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