It is surprising that the Postal Department and the Income Tax Department have not been integrated – High Court
In a recent judgment, the Hon’ble High Court of Karnataka expressed surprise that the Postal Department and Income Tax Department have not been integrated to provide real-time tracking of notices issued and only receipts issued have been maintained by the IT Department. Assessment order was quashed as Department could not show if show cause notices were served.
ABCAUS Case Law Citation:
4648 (2025) (07) abcaus.in HC
In the instant case, the assessee had challenged the assessment order under Section 144 read with Section 147 of the Income-tax Act, 1961 (the Act) along with notice of demand and consequential penalty order.
The grievance of the petitioners was that the petitioners, being the legal heirs of the late assessee were not brought on record as legal heirs of the said assessee by the Assessing Officer (AO) in terms of the impugned order.
It was stated that the assessment was regarding the deceased assessee, and as such, all his legal heirs are to be brought on record. However, only the wife of the deceased and another sibling had been brought on record. The petitioners, who were also the children of the the deceased, had not been brought on record. And as such, it was submitted that an opportunity has to be provided to the petitioners to place their say on record to enable the AO to pass appropriate orders.
On the other hand the Department contended that before completion of the assessment, notices had been issued to all the petitioners and in support thereto, the original registered post receipts were produced.
On enquiry by the Hon’ble High Court as to whether the said notice had been duly served on and any acknowledgment was available, the Department was unable to place the same on record since what was maintained by the Income Tax Department was only the receipts issued by the Postal Department for registered post which had been dispatched by the Income Tax Department.
The Hon’ble High Court expressed surprise that the Postal Department and the Income Tax Department have not been integrated.
The Hon’ble High Court observed that when the High Court had integrated with the Postal Department to provide real-time tracking of all the notices issued by the Court to the concerned litigants, it would be for the Income Tax Department also to have proper postal integration, and thereby proper and adequate records are maintained as regards service of notices by the registered post acknowledgment due. Of course, this being in respect of notices served otherwise through by way of email.
The Hon’ble High Court opined that in view of the fact that no document had been placed on record evidencing service of notice on the petitioners and the petitioners being on record as legal heirs of the deceased assessee, impugned orders could not have been passed by the AO against the petitioners by showing them as parties to the said order without there being a notice issued and served.
Accordingly, the impugned assessment order and consequential notices were quashed. The AO was directed to consider the objections of the Petitioners and permit the petitioners to examine and cross-examine the witnesses in the matter and after hearing the petitioners to pass necessary orders in accordance with law.
Download Full Judgment Click Here >>
- High Court grants bail to accused of alleged GST evasion of Rs. 120 crores
- TDS u/s 194IC is applicable for payment under JDA to transferor holding leasehold rights
- On invoking Section 69A burden of proof lies on AO to establish source of unexplained money
- When order u/s 263 is quashed, assessment order u/s 143(3) r.w.s. 263 has no legs to stand
- When interest income offered on accrual basis, TDS on maturity can not be disallowed
