M/s.Multivista Global Private Limited v. Assistant commissioner of Income Tax

Madras HC20 Jan 2025WP/24870/2022

Case brief

AI extract

What is this about?

Alternate remedy / non-communication of assessment order - Madras HC directs assessee (Multivista Global Pvt Ltd) to statutory appeal u/s 246A IT Act instead of writ; s.143(3) r.w. 143(3A)/(3B) assessment AY 2018-19; demand Rs.7,07,61,360; web-portal communication upheld; stay remedy u/s 220(6); writ disposed 20.01.2025.

What did the court decide?

Writ petition disposed of with liberty to file statutory appeal under Section 246A of the Income Tax Act, 1961 within 30 days of receipt of the order and to seek stay of recovery under Section 220(6) before the Assessing Officer; no order as to costs; connected W.M.P.Nos. 23811 & 23812 of 2022 closed. ¶¶60

M/s.Multivista Global Private Limited Vs Assistant commissioner of… — Income Tax | Madras HC (2025)

What the court decided

AI extract

Outcome

¶¶60

Issue for consideration

Whether the impugned assessment order dated 07.04.2021 for AY 2018-2019 and the corresponding demand in the impugned communication letter dated 12.08.2022 are liable to be quashed on the ground that the assessment order was not communicated to the petitioner. +1 more

¶¶33

Court's answer

The challenge to the assessment order dated 07.04.2021 solely on the ground that it was not communicated to the petitioner cannot be countenanced: the petitioner participated in the assessment proceedings and the order was communicated through the web portal; non-receipt by e-mail occurred because the petitioner had altered its E-mail ID.

¶¶41

Ratio / Principle

The demand of Rs.7,07,61,360/- for AY 2018-2019 in the communication letter dated 12.08.2022 would be in line with the computation/demand notice under Section 156 of the Income Tax Act, 1961 that would have accompanied the assessment order dated 07.04.2021; the petitioner did not place a copy of that notice along with its typed set of papers.

¶¶44

Key takeaways

Liberty is granted to the petitioner to file a statutory appeal under Section 246A of the Income Tax Act, 1961 against the assessment order dated 07.04.2021 before the Appellate Commissioner, within 30 days from receipt of a copy of the order (the writ petition having been filed on 09.09.2022).ratio¶¶53
As regards stay of recovery of tax, it is open to the petitioner to work out its remedy under Section 220(6) of the Income Tax Act, 1961 before the Assessing Officer.ratio¶¶56

Detailed headnote1 paragraphs

MADRAS HIGH COURT (C. Saravanan, J.), 20.01.2025 - M/s. Multivista Global Pvt Ltd v. ACIT & Anr (W.P.No. 24870 of 2022): Writ petition challenging (i) assessment order dated 07.04.2021 for AY 2018-2019 under s.143(3) r.w. ss.143(3A) & 143(3B) Income Tax Act, 1961 and (ii) demand reminder letter dated 12.08.2022 showing Rs.7,07,61,360/- for AY 2018-2019, disposed of. Held: the plea of non-communication of the assessment order was untenable since the petitioner participated in assessment and the order was communicated via web portal; non-receipt of e-mail was attributable to the petitioner altering its e-mail ID. The demand was consistent with the s.156 notice accompanying the assessment order. Liberty granted to appeal under s.246A within 30 days and to seek stay of recovery u/s 220(6) before the Assessing Officer; connected miscellaneous petitions closed.

¶1

W.P.No. 24870 of 2022

¶2

IN THE HIGH COURT OF JUDICATURE AT MADRAS

¶3

Dated : 20.01.2025

¶4

CORAM:

¶5

THE HONOURABLE MR. JUSTICE C. SARAVANAN W.P.No. 24870 of 2022

¶6

and

¶7

W.M.P.Nos. 23811 & 23812 of 2022

¶8

M/s.Multivista Global Private Limited

¶9

Represented by its Authorised Signatory

¶10

Mr.Deepak Subramaniam Sudha Centre, 1st Floor, New No. 31, Old No. 19 Dr.Radhakrishnan Salai, Mylapore Chennai – 600 004.

¶11

… Petitioner

¶12

Versus

¶13

The Assistant Commissioner of Income Tax, Corporate Circle 4(1), Chennai.

¶14

The Additional / Joint / Deputy /

¶15

Assistant Commissioner of Income Tax, Income Tax Officer, National E-Assessment Centre, Delhi.

¶16

... Respondents

¶17

Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying to Writ of Certiorari, calling for the records of the respondents contained in impugned letter issued by the 1st respondent vide DIN and Letter No.ITBA/COM/F/17/2022-2023/1044642927(1) dated 12.08.2022

¶18

https://www.mhc.tn.gov.in/judis

¶19

W.P.No. 24870 of 2022

¶20

and the impugned assessment order issued vide DIN No.ITBA/AST/S/143(3)/2021-2022/1032263398(1), dated 07.04.2021 for the assessment year 2018-2019 passed by the 2nd respondent under Section 143(3) read with Sections 143(3A) & 143(3B) of the Income Tax Act, 1961, and quash the same as arbitrary, unjust and illegal.

¶21

For Petitioner : No Appearance For Respondents : Mr.S.Rajasekar, Senior Standing Counsel

¶22

ORDER

¶23

In this writ petition, the petitioner has challenged the Impugned

¶24

Communication Letter dated 12.08.2022 of the 1st respondent wherein the

¶25

petitioner has been reminded by the arrears of income tax of various assessments from the Assessment Year 2010-2011 to the Assessment Year 2020-2021. The petitioner has also challenged the Impugned Assessment Order dated 07.04.2021 for the Assessment Year 2018-2019 passed by the

¶26

2nd respondent under Section 143(3) read with Section 143(3A) and

¶27

Section 143(3B) of the Income Tax Act, 1961.

¶28

https://www.mhc.tn.gov.in/judis

¶29

W.P.No. 24870 of 2022

¶30

The records reveal that the petitioner has filed return of income

¶31

for the Assessment Year 2018-2019 on 24.09.2018 declaring a taxable income of Rs.6,68,64,860/-. Several notices have been sent to the petitioner which was also partly complied with by the petitioner. It is specifically mentioned in the Impugned Assessment Order dated 07.04.2021 passed for the Assessment Year 2018-2019.

¶32

It is the specific case of the petitioner that as per Serial No.7 of

¶33

the Impugned Communication Letter dated 12.08.2022, the petitioner has been mulcted with a huge tax liability of Rs.7,07,61,360/- for the Assessment Year 2018-2019. It is submitted that the said Impugned Assessment Order dated 07.04.2021 was not communicated to the petitioner in the web portal. It is, therefore, submitted that the demand confirmed in the Impugned Assessment Order dated 07.04.2021 and demand in the Impugned Communication Letter dated 12.08.2022 are liable to be quashed.

¶34

https://www.mhc.tn.gov.in/judis

¶35

W.P.No. 24870 of 2022

¶36

It is the contention of the petitioner that the Impugned

¶37

Assessment Order dated 07.04.2021 was not communicated to the

¶38

petitioner by the respondents.

¶39

The challenge to the Impugned Assessment Order dated

¶40

07.04.2021 only on the ground that the same was not communicated to the

¶41

petitioner cannot be countenanced, as the petitioner has not only participated in the proceedings but also was communicated with the Impugned Assessment Order dated 07.04.2021 through web portal. The petitioner has altered the E-mail ID and therefore, the petitioner has not received communication of passing of the Impugned Assessment Order dated 07.04.2021 through E-mail ID.

¶42

The demand in the Impugned Communication Letter dated

¶43

12.08.2022 for the Assessment Year 2018-2019 demanding a sum of

¶44

Rs.7,07,61,360/- from the petitioner would be in line with the computation

¶45

https://www.mhc.tn.gov.in/judis

¶46

W.P.No. 24870 of 2022

¶47

under Section 156 of the Income Tax Act, 1961 which would have accompanied with the Impugned Assessment Order dated 07.04.2021. The petitioner, has, however not kept a copy of the same along with typed set of papers.

¶48