Facts of the Case

The petitioner, Siam Stock Holdings Limited, filed a writ petition challenging the show cause notice dated 17.03.2023 issued under Section 148A(b) of the Income-tax Act, 1961, the order dated 17.04.2023 passed under Section 148A(d), the reassessment notice dated 17.04.2023 issued under Section 148, the ex parte best judgment assessment order dated 13.05.2025 passed under Sections 147/144, consequential demand notice dated 13.05.2025 under Section 156, penalty notices dated 13.05.2025 issued under Sections 271AAA, 271AAC(1) and 272A(1)(d), and email communication dated 09.07.2025 intimating outstanding demand for Assessment Year 2019–20.

The petitioner contended that none of the notices or orders were received by it and that the first intimation was received only in July 2025. It was submitted that all statutory communications were sent by the Department to an email address belonging to an employee, namely veronique.magny.antoine@abaxservices.com, and not to the petitioner’s official email address kcs@premjee.com, which had been used for regular correspondence in recent years.

Issues Involved

Whether reassessment proceedings can be sustained where statutory notices and orders are not served on the assessee at its correct and active email address, whether such non-service amounts to violation of principles of natural justice, and whether ex parte assessment orders passed in such circumstances are liable to be set aside.

Petitioner’s Arguments

The petitioner argued that none of the notices under Section 148A or Section 148, nor the assessment or penalty orders, were ever served upon it. It was contended that service of notices on the email address of an employee, which was no longer used for statutory correspondence, could not be treated as valid service. It was further submitted that the last return filed using that employee’s email pertained to Assessment Year 2016–17, and thereafter all communications were being received at the petitioner’s official email address. On this basis, the petitioner contended that the entire reassessment proceedings were vitiated for breach of natural justice.

Respondent’s Arguments

The Revenue submitted that all notices and orders were sent to the email address veronique.magny.antoine@abaxservices.com. It was fairly conceded that the notices were not sent to kcs@premjee.com and that there was a likelihood that the petitioner may not have accessed the communications sent by the Department.

Court Order / Findings

The Delhi High Court observed that statutory notices and orders were admittedly not sent to the petitioner’s official and active email address. In view of the Revenue’s admission and the likelihood that the petitioner had no knowledge of the proceedings, the Court held that the reassessment proceedings suffered from violation of principles of natural justice. The Court held that in such circumstances, continuation of proceedings culminating in an ex parte best judgment assessment could not be sustained. Accordingly, the Court set aside all proceedings initiated pursuant to the notice dated 17.03.2023 and remanded the matter to the Assessing Officer.

Important Clarification

The Court clarified that the order was passed in the specific facts of the case concerning improper service of notices and that all contentions of the petitioner on facts and in law were left open to be urged before the Assessing Officer. The petitioner was granted liberty to file a reply to the show cause notice.

Final Outcome

The writ petition was disposed of. The show cause notice dated 17.03.2023 issued under Section 148A(b), the order dated 17.04.2023 passed under Section 148A(d), the reassessment notice dated 17.04.2023 issued under Section 148, the ex parte assessment order dated 13.05.2025, consequential demand and penalty notices dated 13.05.2025, and the email communication dated 09.07.2025 were all set aside. The petitioner was directed to file its reply to the notice dated 17.03.2023 within six weeks, and upon receipt thereof, the Assessing Officer was directed to proceed in accordance with law.

Link to download the order - https://www.mytaxexpert.co.in/uploads/1769681281_SIAMSTOCKHOLDINGSLIMITEDVsASSISTANTDEPUTYCOMMISSIONEROFINCOMETAXCIRCLEINTERNATIONALTAXATION312ORS..pdf

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