Reassessment Notice sent to Tax Consultant’s email ID goes Uninformed to Taxpayer: ITAT remands Notice [Read Order]

The CIT(A) dismissed the appeal for non-prosecution and upheld the order of the AO without addressing the issues on merits.
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In a recent ruling, the Income Tax Appellate Tribunal remanded the Income Tax notice, which was sent to the Email ID of the tax consultant of the taxpayer, in which he failed to inform the assessee about the notices.

In this case, the assessee, Joykutty Selistine, is engaged in the business of resale of plastic mats, operating between Kerala and Ahmedabad, and did not file his return of income for the assessment year ( AY ) 2014-15.

During the assessment proceedings, although notice was sent under Section 148 of the Income Tax Act, 1961, and subsequent notices under Section 142(1) of the Income Tax Act 1961, the assessee did not respond, resulting in the assessment being completed ex parte.

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The AO added Rs. 12,19,200 as unexplained money under Section 69A of the Income Tax  Act, accepting part of the assessee’s explanation for the cash deposits but rejecting others due to a lack of documentary evidence.

The Commissioner of Income Tax Appeals  [ CIT(A) ] dismissed the appeal for non-prosecution and upheld the order of the AO without addressing the issues on merits.

It was submitted by the counsel on behalf of the assessee that the assessee was technologically illiterate and that the assessee did not receive proper communication regarding the appellate proceedings as the registered email address on the portal belonged to the assessee’s tax consultant, who failed to inform the assessee about the notices.

The bench observed that  the assessee was deprived of a fair chance to present his case due to procedural and communication deficiencies. As the assessee had no access to email communication, and the subsequent non-prosecution of the appeal without considering the merits of the case are contrary to the principles of natural justice. The assessee should be granted a fresh opportunity to present the necessary documentation and explanations in support of his case.

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The bench set aside the orders passed by the CIT(A) and remanded the matter back to the CIT(A) for fresh adjudication in accordance with law, after providing adequate opportunity to the assessee to present his case.

The ITAT bench, comprising of Suchitra Kamble ( Judicial Member ) and Makarand V. Mahadeokar ( Accountant Member ) allowed the appeal filed by the assessee for statistical purposes.

The assessee was represented by Mr. S. N. Divatia & Mr.  Samir Vora, and revenue by Mr. V.K. Mangla.

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