When Tax Department Ignores Email Reply: What the High Court Said
If your income tax reply sent via email wasn’t considered, and no personal hearing was given before reassessment—here’s what the High Court recently ruled.
Keyphrase: Taxpayer’s email reply
What Happened: The Case in Brief
In a recent High Court case, a taxpayer had responded to a reassessment notice under Section 148A(b) of the Income-tax Act, 1961 through email. However, the Income Tax Department:
- Passed the 148A(d) order
- Initiated reassessment
- Did not consider the email reply
- Did not grant personal hearing, despite being requested
The taxpayer approached the High Court, alleging violation of natural justice.
HC Verdict: Department Must Reconsider
The High Court noted that:
- The reply filed through email was genuine and timely
- There was no evidence the officer had considered the reply
- Opportunity of personal hearing, especially when requested, is part of procedural fairness
Final Outcome:
The Court quashed the 148A(d) order and directed the Assessing Officer to:
- Consider the taxpayer’s email reply afresh
- Grant a personal hearing
- Then pass a fresh order, in line with Section 148A(d)
Legal Angle: What Section 148A Demands
As per Section 148A (introduced via Finance Act, 2021):
- Tax authorities must issue a show cause notice under 148A(b)
- Taxpayer can file a reply (online or otherwise)
- Department must consider the reply before passing the 148A(d) order
- If requested, personal hearing under Section 148A(c) must be granted
📌 Non-compliance with these steps can nullify the entire reassessment process.
Why This Matters for You
If you or your client received a reassessment notice, remember:
- Reply through registered email or portal
- Keep acknowledgment or email delivery records
- Request a personal hearing under 148A(c) if needed
- If your reply isn’t addressed in the final order, you can challenge it in writ petition
Expert View: Practical Compliance Tip
“Always quote the DIN (Document Identification Number) of the notice in your email reply and use the official email ID mentioned in the notice. Also, record your request for personal hearing clearly—it strengthens your legal position if ignored later.”
– CA Anuj Sharma, Tax Litigator
FAQs
Can email replies be valid under the Income Tax Act?
Yes. If sent to the correct email address and within the timeline, replies via email are considered valid responses under e-proceedings.
Is personal hearing mandatory under Section 148A?
No, but if the taxpayer requests a personal hearing, it should be provided as per principles of natural justice and CBDT instructions.
What if the tax officer ignores the reply and passes reassessment?
You can file a writ petition in the High Court to set aside the order if due process wasn’t followed.
Summary
If the Tax Department ignores a taxpayer’s email reply and denies a personal hearing before reassessment under Section 148A, the High Court can quash the order and ask the officer to reconsider the case afresh.
Need help replying to a 148A notice or filing a writ petition?
Talk to our experts at Efiletax — India’s trusted platform for tax compliance and legal support.