Pavithra Sugichandran v. DCIT · Madras High Court on §148: reassessment set aside where the noticee never saw the online notices

Is portal-only service good service against a person who never used the portal?

Not always. Where an uneducated non-taxpayer was unaware of online notices, the reassessment violated natural justice and was set aside despite eight years' delay.

Facts in brief

• The assessee and her sister sold vacant land, sharing proceeds equally.
• A reassessment notice treated the consideration as short-term capital gains; reassessment and penalties followed.
• Being uneducated and not on the tax rolls, she learned of the proceedings only during recovery action.

Issue before the bench

Whether constructive service through the e-Filing portal binds a noticee who could not reasonably monitor it.

Held

Given the eight-year delay and absence of proper communication, the reassessment notice violated natural justice and was set aside; proceedings to be re-done with fresh notice and personal hearing.

Practitioner takeaway