Lack of Proof of Notice Service: ITAT sets aside CIT(A) Order [Read Order]

The Mumbai Bench of Income Tax Appellate Tribunal ( ITAT ) set aside the order passed by the Commissioner of Income Tax ( Appeals )[CIT(A)] due to lack of proof of proper notice service.

Pukhraj Shreemalji, appellant-assessee, appealed against the order dated 14.05.2024 passed by the CIT(A). The assessee’s counsel argued that the CIT(A) proceeded ex parte without properly serving the notice, denying a fair hearing. It was claimed that this made the order invalid and required it to be set aside. The revenue counsel defended the order, stating that the appeal lacked merit and should be dismissed.

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Read More: Lack of Notice for Hearing served to assessee: ITAT restores file for Denovo proceedings

The two member bench comprising Raj Kumar Chauhan ( Judicial Member ) and Narendra Kumar Billaiya ( Accountant Member ) considered the submissions and referred to Section 250(2)(a) of the Act, which guarantees the right to a fair hearing. It noted that the CIT(A) issued multiple notices via email, including a final opportunity notice, but received no response. The CIT(A) concluded that the appellant was not interested in pursuing the appeal and upheld the AO’s order.

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Read More: Income Tax Hearing Notice Not Received: ITAT Quashes Ex Parte Order, Remands Matter for Fresh Hearing

However, the appellate tribunal found no proof that the notices were properly served or brought to the assessee’s attention, indicating that an effective hearing was not provided.

Read More:ITAT Sets Aside CIT(A) Order for Failure to Provide Fair Hearing, Remands for Fresh Adjudication

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Therefore,the ITAT set aside the order and restored  the matter to  CIT(A) directing the assessee to present the case within 60 days.

In short,the appeal filed by the assessee was allowed for statistical purposes.

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