Azeem Infinite Dwelling India Pvt Ltd Vs ITO (Karnataka High Court)
In Azeem Infinite Dwelling India Pvt Ltd vs ITO, the Karnataka High Court addressed a tax dispute where the petitioner challenged multiple orders and notices issued under the Income Tax Act, 1961. These included an order under Section 148A(d) dated 1 April 2022, a notice under Section 148, and an assessment order under Section 147 read with Sections 144 and 144B. The petitioner argued that the assessment proceedings were invalid because all notices and correspondences had been sent to an email ID, [email protected], created by a former accountant who no longer worked for the company. This resulted in the petitioner not receiving the notices, thereby violating the principles of natural justice. The petitioner requested that the court set aside the assessment order and allow the case to return to the Section 148A(b) stage, giving them a fair chance to respond to the notices.
The Karnataka High Court considered the memo filed by the petitioner, which showed that the notice under Section 148A(b) had been sent to an outdated email ID. Recognizing the procedural flaw, the court set aside the earlier orders and notices, including the assessment order, demand notice under Section 156, and penalty notice under Section 274. The court remitted the case back to the stage of the Section 148A(b) notice, thereby giving the petitioner an opportunity to respond properly to the income tax proceedings. This decision underlines the importance of proper communication in tax assessments and upholds the taxpayer’s right to be heard before any adverse action is taken.
