Natural justice in income-tax service of notice: portal upload alone was found inadequate, leading to remand for fresh hearing.

Service of income-tax notices uploaded only on the IT portal, without effective follow-up, was treated as insufficient where the assessee claimed lack of real notice and no personal hearing was granted. The High Court stressed that, when portal notices elicit no response, the officer should use alternative modes of service under Section 282 of the Income-tax Act, including RPAD, so that compliance is not merely formal and the principles of natural justice are preserved. The impugned assessment and consequential order were set aside and the matter remanded for fresh consideration, with directions for reopening the portal, filing of reply, issuance of RPAD notice fixing personal hearing, and disposal on merits.

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Issues: Whether the impugned assessment order dated 27.01.2025 and consequential order dated 04.07.2025 can be set aside and the matter remanded where notices were uploaded on the IT portal, no personal hearing was given, and the petitioner claims lack of effective service.

Analysis: The Court examined whether service by uploading notices on the IT portal, without any effective follow-up, resulted in denial of opportunity of personal hearing and thereby breached the principles of natural justice. The Court considered the need for the Officer to explore alternative modes of service prescribed under Section 282 of the Income-tax Act, 1961 when there is no response to portal notices, including sending notices by RPAD, to ensure effective service and avoid mere formal compliance. The Court also took into account the petitioner's willingness to make an interim payment and sought to frame an appropriate remedial order to enable the petitioner to file replies and obtain a hearing.

Conclusion: The impugned assessment order dated 27.01.2025 and the consequential order dated 04.07.2025 are set aside and the matter is remanded to the 1st respondent for fresh consideration subject to the condition that the petitioner pays Rs. 5,00,000 within four weeks, after which the portal shall be opened for filing reply, and the respondent shall issue a 14 days RPAD notice fixing personal hearing and thereafter pass orders on merits.

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