Case Law Details
Renga Fabricators Private Limited Vs Additional/Joint/Deputy/ACIT/ITO (Madras High Court)
Introduction: The Madras High Court’s decision in the case of Renga Fabricators Private Limited vs. Additional/Joint/Deputy/ACIT/ITO highlights the importance of proper communication and adherence to legal procedures in the context of income tax assessments. The court ruled in favor of the petitioner, setting aside an assessment order due to a crucial notice being sent to an outdated email address.
Impugned Assessment Order and Notice: The petitioner contested an Impugned Assessment Order dated March 27, 2022, with reference to DIN ITBA/AST/S/147/2021-2022/1041745769(1). This order followed a notice under Section 148 of the Income Tax Act, 1961, dated March 30, 2021, which was issued because the petitioner had failed to file regular returns for the Assessment Year 2015-2016.
Outdated Email Communication: The problem arose because the notice was sent to an email address (esai@vsnl.com) that was no longer in use. Bharat Sanchar Nigam Limited (BSNL) had discontinued IT services from April 2019. Although the petitioner had an alternate email ID (esaiandco@gmail.com), it was not used for communication.
Non-receipt of Notices: The petitioner claimed that none of the communications, starting from the March 30, 2021 notice, were received due to the outdated email address. The petitioner only became aware of the Impugned Order after a notice under Section 274, combined with Section 271(1)(c) of the Income Tax Act, 1961, was sent to the petitioner’s Chartered Accountant and the alternate email ID (esaiandco@gmail.com).
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