Non Service Of Hearing Notice Invalidates Ex-Parte Order: Kolkata ITAT
Pankaj Bajpai
27 Jun 2024 8:15 PM IST
Finding that the hearing notices were not duly served by the CIT(A) or the AO and resultantly the assessment order was passed ex-parte, the Kolkata ITAT directed the assessee to furnish its correct address before the competent authority. The Bench of Sanjay Garg (Judicial Member) and Sanjay Awasthi (Accountant Member) observed that “the assessee has further changed its address and...
Finding that the hearing notices were not duly served by the CIT(A) or the AO and resultantly the assessment order was passed ex-parte, the Kolkata ITAT directed the assessee to furnish its correct address before the competent authority.
The Bench of Sanjay Garg (Judicial Member) and Sanjay Awasthi (Accountant Member) observed that “the assessee has further changed its address and the assessee is required to duly brought to the knowledge of the Assessing Officer/CIT(A) regarding the change in address”. (Para 3)
Facts of the case:
The assessee company had challenged the ex-parte order passed by the AO u/s 144 as well as the ex-parte order passed by the CIT(A) alleging that the hearing notices issued to the assessee through registered post were not responded to by the assessee. However, the assessee contended that the address mentioned in the assessment order was incomplete as well as wrong, and hence, notices sent through registered post were not served upon the assessee. It was also contended that the email address mentioned in the return of income was different to that has been mentioned in appeal Form 35 before the CIT(A).
Observations of the Tribunal:
The Bench found from a perusal of the Form No.36 that the assessee has changed its address later on, and this is why the hearing notices could not be served upon the assessee during the appellate proceedings.
Thus, because of the change of address of the assessee, the notices issued by the AO during course of assessment proceedings were returned with mark 'not found'.
The Bench pointed that in case assessee used to change its address, then it is required to duly brought the same to the knowledge of the Assessing Officer/CIT(A) regarding the change in address.
However, considering the fact that the assessee could not present its case before the CIT(A) for want of service of notice, the Bench observed that nobody should be condemned unheard.
Hence, the ITAT set aside the order of the CIT(A) with a direction to decide the appeal of the assessee afresh on merits.
The ITAT also directed the assessee to make an application for change of address in the PAN Database as per rules, and clarified that in case the appeal is decided by serving notice at proper address, then the assessee will be estopped from saying that the notices have not been served at the correct address.
Counsel for Appellant/ Assessee: Abhishek Bansal
Counsel for Respondent/ Revenue: P.P. Barman
Case Title: M/s Littlestar Projects Pvt. Ltd vs. ITO
Case Number: I.T.A. No.1285/Kol/2023
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