Notice Sent On Incorrect Email Addresses Constitutes Improper Service: Ahmedabad ITAT
Mariya Paliwala
27 Jun 2024 9:30 AM IST
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the notices were sent to an incorrect email address, which led to the non-receipt of the notices by the assessee.The bench of Suchitra Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) has observed that the judicial pronouncements consistently emphasize the importance of proper service of notices as...
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the notices were sent to an incorrect email address, which led to the non-receipt of the notices by the assessee.
The bench of Suchitra Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) has observed that the judicial pronouncements consistently emphasize the importance of proper service of notices as a fundamental requirement for the validity of proceedings under the Income Tax Act, 1961. Extrapolating these principles to the context of email communications, it is evident that incorrect email addresses would constitute improper service, invalidating any subsequent actions based on notices.
The bench remarked that the courts have repeatedly held that procedural requirements must be strictly followed to ensure fairness and legality in tax administration.
The assessment of the assessee under Section 143(3) was completed on December 15, 2006, for the AY 2005–2006 and on December 23, 2008, for the AY 2006–2007, determining the total income at Rs. NIL against the returned loss of Rs. 51,62,590/- for the AY 2005–2006. For the AY 2006-2007, the total income was determined at Rs. 1,56,15,514 after setting off a loss of Rs. 42,55,953.
In both cases, CIT (A) upheld the AO's orders. The assessee preferred to appeal before the tribunal in both assessment years.
The assessee contended that the CIT (A) dismissed the appeal without giving them a fair opportunity to present their case. The notices were sent to an incorrect email address. Consequently, the assessee did not receive the notices and could not comply with the notices, resulting in the dismissal of the appeal.
The tribunal held that CIT(A) has erred in dismissing the appeal ex-parte without providing the assessee a fair opportunity to present their case.
The tribunal set aside the orders of CIT(A) and restored the matter back to the file of CIT(A) for fresh adjudication after providing an adequate opportunity of being heard to the assessee.
Counsel For Appellant: Mehul K. Patel
Counsel For Respondent: Malarkodi R.
Case Title: LMP Motors Private Limited Versus ACIT
Case No.: ITA No.1066/Ahd/2023
