ITAT directed AO to serve notice of hearing both through electronic and physical mode upon the assessee
In a recent case, the ITAT has directed AO to serve notice of hearing both through electronic and physical mode as the assessee was a non-return filer and did not know nitty gritty of Income Tax proceedings.
ABCAUS Case Law Citation:
ABCAUS 3978 (2024) (04) ITAT
In the instant case, the assessee had challenged the ex-parte order passed by the National Faceless Appeal Centre/CIT(A) in confirming the addition made u/s 69A of the Income Tax Act, 1961 (the Act) by the Assessing Officer (AO) as unexplained money and applying the provision of section 115BBE thereon.
Before the Tribunal it was submitted that the order of the CIT(A) and the AO were ex parte orders. It was further stated that the assessee was a non-return filer and did not know the nitty gritty of Income Tax proceedings.
It was contended that no notice of hearing had ever been served upon the assessee by any of the lower authorities through physical mode. The notices were served either through email or were uploaded on Income Tax portal which were not accessed to by the assessee.
It was submitted that in this case the additions had been made by the Assessing Officer u/s 69A of the Act on account of cash deposits during demonetization period. However, while making the additions, the Assessing Officer had also added the amount relating to the other credit entries apart from the cash deposits.
It was further submitted that the assessee was a small businessman and the entire deposits out of were business receipts of the assessee. That the assessee had fair case on merits and additions had been made by the Assessing Officer and further confirmed by the CIT(A) in respective ex parte orders as the assessee, out of ignorance and being not aware of the date of hearings, could not file the necessary submissions and documents.
It was submitted that in the interests of justice, the assessee may be given an opportunity to present his case before the Assessing Officer.
The ITAT in view of the facts of the case and submissions made set aside the impugned order of the CIT(A) and the matter was restored to the file of the Assessing Officer for de novo assessment.
It was directed that the Assessing Officer will serve the notice of hearing both through electronic and physical mode upon the assessee.
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