The Bangalore Bench of Income Tax Appellate Tribunal ( ITAT ) directed fresh adjudication after finding that the First Appellate Authority ( FAA )’s six income tax notices were likely delivered to the assessee’s spam folder. The notices were not received by the assessee, leading to the dismissal of the appeal ex parte.
Davis Jenny, the appellant-assessee, had filed a return of income on 11.10.2017, declaring Rs.49,17,790. The case was scrutinized, and it was found that Rs.30,55,000 in cash was deposited in her Canara Bank account. The cash included Rs.10 lakhs from Mr. C. Kumar, Rs.14 lakhs from Mr. Santosh Lewis, and Rs.6,55,000 in hand.
Despite submitting details in response to a summons, the Assessing Officer ( AO ) made an addition of Rs.10 lakhs, applying the tax rate under section 115BBE. Dissatisfied, the assessee appealed to the FAA on 24.12.2019.
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The FAA issued six notices on various dates,which the assessee did not respond to, leading to the dismissal of the appeal ex parte. The assessee then appealed to the tribunal.
The assessee argued that she had complied with notices issued by the AO during the assessment proceedings. However, the notices from the FAA were not received, possibly due to being delivered to the spam folder, which prevented her from responding.
The assessee emphasized that there was no intention to disregard the FAA’s notices and had participated in the assessment proceedings. The assessee submitted a paperbook and requested another chance to respond and present evidence.
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The tribunal, considering the submissions and the assessee’s request, remitted the issue to the Commissioner of Income Tax ( Appeals ) [CIT(A)] for fresh consideration. The assessee was directed to update contact details, file necessary documents, and cooperate with the proceedings. It was noted that reasonable opportunity should be given, but further default would result in no concessions. The two-member bench comprising Beena Pillai ( Judicial Member ) and Laxmi Prasad Sahu ( Accountant Member ) allowed the appeal filed by the assessee.
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