Kolkata ITAT Directs Assessee to Correct Address Due to Improper Service by the CIT or AO

Discovering that the hearing notices were not duly served via the CIT(A) or the AO and resultantly the assessment order was passed ex-parte, the Kolkata ITAT asked the taxpayer to provide its correct address before the competent authority.

The Bench of Sanjay Garg (Judicial Member) and Sanjay Awasthi (Accountant Member) noted that “the assessee has further changed its address and the assessee is required to duly bring to the knowledge of the Assessing Officer/CIT(A) regarding the address change”. (Para 3)

Case facts

The ex-parte order passed by the AO u/s 144 and the ex-parte order passed by the CIT(A) has been contested via the taxpayer company stating that the hearing notices furnished before the taxpayer via the registered post were not responded to by the taxpayer.

The taxpayer argued that the address cited in the assessment order was not completed and was incorrect, consequently, notices sent via the enrolled post were not provided before the taxpayer. It was argued that the email address cited in the income return was distinct compared to the one mentioned in the petition Form 35 before the CIT(A).

Tribunal’s observations

It was found by the Bench from a perusal of Form No.36 that the taxpayer has altered its address thereafter and the same is why the hearing notices can not be provided to the taxpayer at the time of the appellate proceedings.

Because the taxpayer modified the address, the notices issued via AO at the time of the assessment proceedings were returned with the mark not found. As per the Bench if the taxpayer alters their address then the same is needed to duly inform the Assessing Officer/CIT(A) of the address alteration.

From the fact that the taxpayer cannot present its matter before the CIT(A) for the desire of the service of the notice, the Bench noted that nobody must be condemned unheard. With the direction to choose the petition of the taxpayer afresh on merits, ITAT set aside the CIT(A) order.

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The taxpayer was sought by the ITAT to make an application for the revision in the PAN Database under the norms and stated that if the appeal is wished via serving the notice at the proper address, the taxpayer shall be stopped from stating that the notices do not deliver on the proper address.