The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has set aside an ex-parte order because the notice was served via email despite the assessee’s request for a physical notice in Form No. 35.
The assessee, Jayshree Kamleshkumar Patel, an individual operating a petrol pump, filed her Income Tax Return for the Assessment Year 2017-18, declaring her total income on 24.10.2017. The return was sent for scrutiny assessment due to significant cash deposits made during the demonetization period.
The assessee issued notices under Section 143(2) of the Income Tax Act on different dates on four separate occasions through registered email. However, the assessee failed to respond to these email notices. Consequently, the assessment was completed ex-parte, with the addition of the cash deposits in the bank account considered as unexplained cash under Section 68 of the Income Tax Act.
Representing the assessee, M. K. Patel argued that although the hearing notices were sent via email, the assessee explicitly stated in Form No. 35 that notices should not be sent through email. As a result, the assessee did not receive any physical notice of the hearing and was unable to attend the appellate proceedings before the National Faceless Appeal Center.
On behalf of the revenue, Rakesh Jha contended that the assessment order was also an ex-parte order, highlighting the lack of cooperation from the assessee and their failure to appear before the appellate authority despite multiple opportunities provided.
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The two-member Bench consisting of Waseem Ahmed (Accountant Member) and T.R. Senthil Kumar (Judicial Member) observed that the assessee had explicitly requested not to receive notices and communications via email, yet the notices were sent electronically instead of physically. Consequently, the Bench ordered that the assessee be given a fair opportunity to present their case.
| Case Title | Jayshree Kamleshkumar Patel |
| Citation | ITA No.385/Ahd/2022 |
| Date | 19.05.2023 |
| Appellant by | Shri M. K. Patel, Advocate |
| Respondent by | Shri Rakesh Jha, Sr. DR |
| Ahmedabad ITAT | Read Order |
