Case Law Details
Sterling Urban Ventures Private Limited Vs Assessment Unit (Karnataka High Court)
Introduction: The recent case of Sterling Urban Ventures Private Limited Vs Assessment Unit before the Karnataka High Court brings attention to a crucial aspect of income tax assessments. The petitioner contested the validity of the assessment order under Section 143(3) read with Section 144B of the Income Tax Act, 1961, dated December 19, 2022, pertaining to the assessment year 2021. The challenge was centered around the notices sent by the Income Tax Department to an incorrect email ID, raising questions about procedural compliance and the petitioner’s right to respond.
Detailed Analysis: The petitioner’s primary contention revolved around the fact that the notices under Section 142(1) were directed to an email ID not registered with the Income Tax Department by the assessee. The petitioner’s registered email IDs were listed as accounts@sterlingdevelopers.com (Primary) and bsvc99@gmail.com (Secondary). However, all notices were sent to the email ID of Sudhakar (sudhakar@sterlingdevelopers.com), which was not declared by the assessee.
Examining the assessment order, it was noted that despite details of several notices issued under Section 142(1), there was no response from the assessee. The court acknowledged that the notices sent to an incorrect email ID deprived the petitioner of the opportunity to respond appropriately. Consequently, the Karnataka High Court set aside the Assessment Order, Notice of Computation Sheet, Consequential Demand Notice, and Penalty Notices. The matter was remitted back to the respondent for resuming from the stage of reply to the Section 142(1) notice.
The court emphasized the lack of opportunity for the assessee to submit a reply due to the misdirection of notices. The decision highlights the importance of adherence to procedural requirements and ensuring that communications reach the correct recipients.
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