Sai Srushti Infrastructure Vs Assessment Unit Income Tax Department (Karnataka High Court)
The Karnataka High Court examined the validity of ex-parte assessment orders for assessment years 2018-19 and 2019-20 passed against the petitioner. The petitioner contended that it could not respond to the show cause notices because the notices were sent to the email ID of an employee who had left the company, and therefore it had no knowledge of the proceedings. The Revenue argued that the notices were sent to the email address furnished by the petitioner and that any internal employment changes could not invalidate service of notice.
Upon hearing both sides and reviewing the records, the Court noted that the impugned assessment orders were passed on the principle of best judgment assessment and that there was no reference to any reply to the show cause notices. Considering the financial consequences that would arise if the orders were allowed to stand, the Court found it appropriate to afford the petitioner an opportunity to respond on merits. The lapse on the part of the petitioner was condoned subject to conditions.
Accordingly, the assessment orders and connected proceedings were set aside and the matter was remitted to the stage of reply to the show cause notices. All contentions on merits were kept open. The petitioner was directed to pay costs of ₹20,000 to the High Court Legal Services Committee.
