IEC Projects Limited Vs DCIT (ITAT Ahmedabad)
Misrepresentation on Email Communication—Ex-Parte CIT(A) Order Set Aside with ₹10,000 Cost; One Final Opportunity Granted
IEC Projects Ltd filed an appeal against the NFAC order dated 04.03.2025 sustaining additions made in assessment u/s 143(3) r.w.s.144B. The AO had treated ₹3,74,50,000 invested in 10,07,000 shares of Corrtech International Pvt. Ltd. as unexplained investment u/s 69, and had also estimated contractual receipts of ₹27.53 crore, applying an 8% profit rate and computing ₹2,20,25,870 as income. This estimated addition was telescoped against the section 69 addition.
Before CIT(A), the Assessee did not effectively prosecute the appeal. In Form 35, the Assessee had expressly opted that no notice should be sent to the email “[email protected]”, yet still claimed non-receipt of email notices. Tribunal observed from record that the Assessee did receive and respond to at least one email notice by filing an adjournment request on 13.02.2025. Therefore, the plea of non-receipt was held factually incorrect and amounted to misrepresentation.
Since CIT(A) dismissed the appeal ex-parte without adjudicating issues on merits—section 69 addition, rejection of books u/s 145(3), estimation of receipts, 115BBE application, and consequential grounds—the Tribunal held that one more opportunity was warranted, but only subject to cost because of incorrect statements and past non-compliance.
Accordingly, Tribunal:
