Delhi HC Recalls It's Order Directing CBI Probe After Income Tax Dept Informs That Email Received By Assessee Was 'Triggered Due To System Error'

The Delhi High Court has recalled its order directing a CBI enquiry for ascertaining the source of an adjournment email sent by Income Tax Department to an assessee firm after the department informed the Court that the same triggered due to system error and in fact was genuine.

A division bench comprising of Justice Manmohan and Justice Navin Chawla recalled its earlier order dated 16th July 2021 after ordering thus:

"Keeping in view the aforesaid, the unconditional apology offered by the respondent is accepted by this Court and the allegations against the petitioner that he had had prima facie committed penal offences under Section 191, 192 and 196 of the IPC are deleted."

An email was received by the assessee firm namely Three C Homes Private Limited on 31st May from the income tax department granting adjournment to the firm. The said email was received from "DONOTREPLY@incometaxindiaefiling.gov.in".

The adjournment was sought by the petitioner company in order to seek time for submitting reply as it's Resolution Professional was unable to access the records of Company due to various lockdown restrictions imposed by the State of Uttar Pradesh.

However, the respondent had said that the petitioner had in fact forged the document as all the communication made by the department to the company was done from delhi.dcit.cen6@incometax.gov.in.

During the course of hearing last week, ASG N.Venkataraman appearing for the Department apprised the Court that the email was generated as an automated acknowledgement confirming submission of the adjournment application made by the assessee as per the standard protocol.

He therefore sought to withdraw relevant paragraphs from the counter affidavit which had alleged that the petitioner assessee had prima facie committed penal offences under IPC.

"Consequently, the order dated 16th July, 2021 directing the Central Bureau of Investigation to enquire as to whether the email dated 31st May, 2021 had been issued to the petitioner by the respondent-Tax Department is recalled." The Court ordered.

In view of this, the Court also set aside the impugned assessment order along with the notice of demand and remanded the matter back to Department for passing a fresh assessment order after giving opportunity of being heard to the petitioner company.

Title: THREE C HOMES PVT. LTD. v. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 6, NEW DELHI

Click Here To Read Order