Entry Made In Dispatch Register Is Not Primary Evidence To Prove Service Of Notice On Assessee: Orissa High Court
Kapil Dhyani
11 Nov 2024 8:30 PM IST
The Orissa High Court has made it clear that an entry in the dispatch register maintained by the Revenue is not primary evidence to show service of notice on an assessee. In the case at hand, Petitioner-assessee was aggrieved by rejection of application made under section 154 in Income Tax Act, 1961 for rectification. Petitioner was issued a notice for scrutiny assessment...
The Orissa High Court has made it clear that an entry in the dispatch register maintained by the Revenue is not primary evidence to show service of notice on an assessee.
In the case at hand, Petitioner-assessee was aggrieved by rejection of application made under section 154 in Income Tax Act, 1961 for rectification.
Petitioner was issued a notice for scrutiny assessment under Section 143(1).
It was the Petitioner's case that he was erroneously assessed in spite of being entitled to exemption of charge of income tax under the proviso to Section 5(1)(c).
The proviso exempts tax on income such of a person not ordinarily resident in India, which accrues or arises outside India (unless it is derived from a business controlled in or a profession set up in India).
Nonetheless, a demand against the Petitioner was uploaded in the system.
Petitioner claimed the said intimation of adjustment of refund never saw the light of the day. The Revenue on the other hand submitted that intimation was sent to the Petitioner and the system clearly says date of service to have been on 5th April, 2012.
At the outset, the High Court division bench of Justices Arindam Sinha and MS Sahoo observed,
“Entry made in the system is not primary evidence. It has to be based on something to show that the assessment order denying the exemption claim was informed to petitioner.”
The Revenue admitted that physical acknowledgement of intimation served on the Petitioner was not traceable.
In light of the above, the Court held, “Entry made in dispatch register is not primary evidence for revenue to rely upon and deny petitioner remedy…Communication dated 27th March, 2019 saying petitioner's rectification application cannot be acted upon and subsequent demand dated 1st February, 2023 are set aside and quashed.”
It directed the concerned authority to consider and deal with the rectification application in accordance with law.
Appearance: Senior Advocate S. Ray for Petitioner; Junior Standing Counsel A. Kedia for Respondent
Case title: Alok Kumar Mohapatra v. Income Tax Officer, Khurda and others
Case no.: WP(C) No.4470 of 2023
