No Income Tax Notices received due to Inactive Email & Covid issues, Order Passed Ex parte: ITAT remands 6 Appeals for Fresh Adjudication [Read Order]

The assessee Rajyeshwar Retail Trade Systems Pvt had filed all six appeals. Ltd_, challenging six separate orders of first-appeal passed by CIT (A) for six Assessment Years from 2013-14 to 2018-19. The lower authorities had passed the orders of assessment as well as orders of first-appeals ex parte to the assessee for non-representation.

The assessee had contended that all income tax notices were issued by the AO during COVID-19 pandemic period and the assessee was unable to comply with those notices. The assessee brought to notice the fact that the e-mail ID with the ‘Hotmail’ mailing service was very old and not in operation, and the assessee could not receive notices of hearings fixed by CIT(A), due to which the assessee had failed to attend the first appeal.

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The assessee further argued that the AO had made hefty additions for lack of evidence. One amongst those additions was the addition on account of “Loans & Advances” given by the assessee, which were duly recorded in the books of the assessee and had appeared in the Balance-Sheet.

The two-member bench of Paresh M. Joshi (Judicial Member) and B.M. Biyani (Accountant Member) held that, considering the principles of natural justice and without causing prejudice to the revenue, these matters should be remanded for adjudication afresh, at the risk and responsibility of the assessee.

The bench also ordered that the AO should give the necessary opportunity of hearing to the assessee and pass appropriate orders. The assessee was also directed to remain vigilant and ensure participation in the hearings as may be fixed by the AO.

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