Order u/s 148A(d) quashed as SCN was issued to the email address of demised director

Order u/s 148A(d) quashed as show cause notice u/s 148A(b) was issued to the email address of demised director after his death

In a recent judgment, Hon’ble Karnataka High Court quashed the order u/s 148A(d) and the show cause notice u/s 148A(b) of the Income Tax Act, 1961 (the Act) as the show cause notice was issued to the email address of demised director subsequent to his death.

ABCAUS Case Law Citation:
4436 (2025) (02) abcaus.in HC

In the instant case the Petitioner assessee had challenged the notices issued under Section 148A(b) of the Act as well as order passed under Section 148A(d) of the Act along with consequential notices and orders.

It was the submission of the petitioner that one of the Directors of the petitioner-company was looking after the tax matters including filing of return of income. It is stated that the said Director died (death certificate was produced). It was submitted that since the said Director was looking after the tax matters and who was filing return of income of the petitioner-company had expired, the petitioner-company could not file returns for the relevant assessment year and all notices sent to the email address of the deceased Director had not come to the notice of the petitioner-company. Therefore, the petitioner-company could not file objections and to participate in the proceedings initiated by issuing notice under Section 148A(b) of the Act.

Therefore, the Petitioner prayed for an opportunity to file objections and participate in the proceedings initiated under Section 148A(b) of Act.

The Hon’ble High Court opined that the petitioner-company ought to be given an opportunity to file objections and participate in the proceedings initiated by issuance of notice under Section 148A(b) of the Act and further proceedings.

The Hon’ble High Court observed that return of income filed by the company for the relevant assessment year indicated the email address of the deceased Director. The notice issued under clause (b) of Section 148A of Act was dated subsequent to the death of the said Director of the petitioner-company. I

The Hon’ble High Court opined that if the notices were sent to the e-mail address of the deceased Director, petitioner-company would have no knowledge of the proceedings initiated by issuing notices under Section 148A(b) of the Act. As the proceedings by issuance of notice under Section 148A(b) and further proceedings were ex-parte and since the substantial right of the petitioner was involved, it was appropriate to provide an opportunity to the petitioner-company to file objections and participate in the proceedings.

The Hon’ble High Court quashed the impugned notices and order and the matter was remanded to the AO to the stage of filing objections to notice issued under Clause (b) of Section 148A of the Act.

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