The Surat bench of Income Tax Appellate Tribunal ( ITAT ) has directed to pass fresh income tax assessment order as the CIT(A) and AO passed ex-parte order. No physical notice for hearing or order was issued to the assesse despite opting ‘No’ to receiving notices or orders through E-mail. It condones the delay of 159 days.
In this case, the assessee, Akshaykumar Lathiya had opted ‘NO’ for email service while providing their email ID when filing an appeal for the assessment year 2017-18.
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The appeal was filed against the order of the National Faceless Appeal Centre ( NFAC ), confirming the addition of Rs. 36 lakhs under Section 69A on account of cash deposits during the demonetization period, taxed at 77.25% under Section 115BBE.
The assessee filed the appeal with a delay of 159 days, explaining that they were unaware of the ex parte order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] as no physical notice or order was received.
The assessee only discovered the order after checking the Income Tax Department‘s portal in March 2024, following which they promptly filed the appeal. The ITAT condoned the delay, accepting that it was neither intentional nor deliberate, and emphasised that substantial justice should take precedence over technicalities.
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On the merits, the ITAT noted that both the Assessing Officer ( AO ) and CIT(A) had passed ex parte orders without giving the assessee a fair opportunity to present their case. The tribunal found that while the assessee had provided their email ID during the appeal process, they opted against receiving notices through email.
Considering the facts, the bench of Pawan Singh ( Judicial Member ) restored the case to the AO, directing them to pass a fresh assessment order after granting the assessee a fair opportunity to present their evidence and arguments. The tribunal also cautioned the assessee to be more vigilant in future proceedings.
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