Non-appearance due to communication made to former Accountant’s email: ITAT Remands matter to CIT(A) [Read Order]

The Ahmedabad bench of the Income Tax Appellate Tribunal ( ITAT ) remanded the matter back to the file of the Commissioner of Income Tax Appeals [ CIT( A ) ] for non-appearance as the communication was made to the former accountant’s email id.

The assessee has appealed against the ex-parte order passed by the CIT( A ) for the assessment year ( AY ) 2014-15.

The assessee, a firm in electrical manufacturing, filed its return for AY 2014-15, declaring an income of Rs. 1.05 crores. During scrutiny, the Assessing Officer added Rs. 26,43,324 (25% of sundry creditors), Rs. 17,50,606 (balance difference), and disallowed a flood damage loss claim of Rs. 2,07,90,851 due to lack of substantiation, assessing total income at Rs. 3.57 crores.

The assessee, who was aggrieved by the above order, appealed before the CIT( A ) who had given nine hearings. The assessee sought adjournments only on two occasions and failed to comply by filing relevant materials before CIT(A) and thus the CIT(A) confirmed the additions.

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The assessee’s counsel presented a 75-page paper book containing key financial details, including creditor statements, sales records, job work transactions, and a flood damage report. The counsel submitted that the assessee missed hearing notices because they were sent to an old email belonging to a former accountant. Due to the above-mentioned reasons, the counsel requested another opportunity to present the case before the CIT(A).

The counsel appearing for the Revenue had no major objection in setting aside the matter back to the file of CIT(A), since the assessee has filed various details in the present paper book filed before the bench.

The bench accepted the submissions made by the assessee that the notices were sent to the e-mail address of the accountant who left the job three years ago. The bench set aside the ex parte order passed by the CIT( A ).

The ITAT, comprising Dr. BRR Kumar ( Vice President ) and T. R. Senthil Kumar ( Judicial Member ) allowed the appeal filed by the assessee for statistical purposes.

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