Siam Stock Holdings Limited Vs ACIT (Delhi High Court)
Notices Sent to Ex-Employee’s Email Invalid Entire Reassessment Chain Set Aside – Matter Remanded Back to AO
The Petitioner challenged reassessment proceedings for A.Y. 2019-20, including show-cause notice u/s 148A(b) dated 17.03.2023, order u/s 148A(d) dated 17.04.2023, reassessment notice u/s 148 dated 17.04.2023, ex parte best judgment order u/s 147/144 dated 13.05.2025, consequential demand notice & penalty notices u/s 271AAA, 271AAC(1) & 272A(1)(d).
It was submitted that none of these notices/orders were served on the company’s official email [email protected]. Instead, they were sent to [email protected], which was not the assessee’s email but that of a former employee. The company had last filed return using that email in A.Y. 2016-17, while thereafter all communications were being received at [email protected]. Thus, initiation of proceedings based on wrong email service violated principles of natural justice.
Revenue admitted that all notices were indeed sent to the ex-employee’s email & not the official email. The Court observed that this could have resulted in the assessee not accessing the notices/orders. Consequently, the Court held that the proceedings initiated from notice dated 17.03.2023 stood vitiated.
Accordingly, the entire chain of proceedings – order u/s 148A(d), reassessment notice, ex parte best judgment assessment, demand notice, penalty notices & email communication of outstanding demand – were set aside. The matter was remanded back to AO. The Court granted liberty to assessee to file reply to the original notice u/s 148A(b) within six weeks, & directed AO to proceed afresh in accordance with law. All factual & legal contentions were left open.
