Failure of CA to Register E-Mail ID on Income Tax Portal: ITAT grants another Opportunity to Assessee [Read Order]

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) granted another opportunity to the assessee due to the failure of the Chartered Accountant (CA) to register the email ID on the income tax portal.

The assessee is a co-operative society and has shown rental income of Rs.61,56,782/- under the head “income from house property” and claimed deduction of Rs.18,23,010/- under Section 24(a) of the Income Tax Act. The assessee also claimed a deduction of an amount of Rs.69,746/- and Rs.10,337/- being the premium paid to insurance and land revenue tax respectively and showed the total income from the house property at Rs.42,53,689/-.

The Assessing Officer (AO) proceeded to make the addition of Rs.12,25,000/- and Rs.69,746/- on account of rental income on hoarding and unexplained expenditure under Section 69C of the Income Tax Act respectively and thereby framed the assessment under Section 143(3) of the Income Tax Act.

Notice of the appeal was sent to the assessee society through e-mail as well as Registered Post with Acknowledgment Due (RPAD), which was duly served as per acknowledgment placed on the record by the registry but none appeared on behalf of the assessee.

The Two-member bench comprising of Kuldip Singh (Judicial member) and Amarjit Singh (Accountant member) held that when the assessee brought on record the fact that due to a lapse on the part of his newly engaged CA who could not update his email ID on the income tax portal the notice was not received, the assessee was required to be given another opportunity to pursue its appeal before the Commissioner of Income Tax (Appeal) [CIT(A)] to comply with the rule of natural justice. Therefore, the order of the CIT(A) was set aside and the appeal of the assessee was allowed.

To Read the full text of the Order CLICK HERE

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