ITAT quashes Ex Parte order passed due to Mistake of Service of Notice to Email of Assesses's Counsel [Read Order]

The Income Tax Appellate Tribunal (ITAT) has recently quashed an ex parte order passed due to mistake of services of notice to email of assessee’s counsel.

Assesee Natthi Singh filed the above appeal against the order of the National Faceless Appeal Centre (NFAC).

Assessee had filed the appeal with a delay of 223 days. The assessee in his prayer for condonation of delay prayed that the impugned order of the CIT(A) was received directly into the SPAM folder of the counsel of the assessee.

On being aware of this, Madhvi Joshi, counsel for the assessee filed an affidavit explaining the reason for the delay. He submitted that the order of CIT(A) was received directly into the SPAM folder and was not noticed.

The assessment order was ex-party, the appeal before the CIT(A) was also delayed and again this appeal before the tribunal was delayed. Therefore, the assessee could not bypass the lower authority and seek justice directly from the higher courts.

Assessee prayed for condonation of delay of 223 days. Also the delay of 223 days in filing the appeal by the assessee is condoned in relied upon the decision in case of Land Acquisition vs MST Katiji, wherein the Supreme Court has held that "the expression 'Sufficient Cause' employed by the legislature is adequately elastic to enable the Courts to apply the law in a meaningful manner to subserves the ends of justice that being the life-purpose of the existence of the institution of Courts.”

Further the bench observed that the assessee has all along acted diligently in safeguarding his legal rights and availing the remedies available to him and has acted and taken action but has sufficient reasons so as to bring this appeal.

The reason for passing the exparte order was that on the basis of the information available in NMS data, it was noted that no return of income for assessment year  2011-12 was filed by the assessee.

Hence the notice was issued to file return but there was no response on the part of the assessee and his counsel. Due to this AO passed an ex parte order.

When an appeal filed before the CIT(A), the CIT(A) dismissed the appeal of the assessee.

Counsel for the revenue also contended that assessee is playing hide and seek and is not appearing before the lower authority.

After considering the materials and facts furnished by the both parties, the tribunal confirmed that the delay was caused due to the mistake of service of notice to email of assesse's counsel.

Therefore, the two-member bench of Sandeep Gosain, (Judicial Member) & Rathod Kamlesh Jayantbhai, (Accountant Member) restored the matter back to the file of the CIT(A).

To Read the full text of the Order CLICK HERE

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