Vinayaka Projects Vs ITO (ITAT Bangalore)
Opted for Postal, Got Only Email: ITAT Sets Aside Ex-Parte NFAC Order- Documents Already on Record—Assessee Gets Fresh Chance Before CIT(A)
Assessee appealed against CIT(A)/NFAC order dated 20.05.2025 which dismissed the appeal ex parte. Assessment was reopened u/s 147 & completed u/s 147 r.w.s. 144/144B making an addition of Rs.2,75,00,000/- towards unexplained investment in purchase of immovable property. Assessee contended that the source of investment was sale proceeds from development of site & had filed Form 26AS, bank statements & supporting documents during assessment (acknowledgement no. 419764521240322). Further documents were also filed along with Form 35 before CIT(A) on 03.05.2022 (acknowledgement no. 349219921140322).
Assessee argued before Tribunal that he had opted specifically for postal service of notices in Form 35 & opted out of email communication. However, CIT(A) issued notices only through email, leading to non-representation & ex-parte dismissal. Assessee sought another opportunity to present the merits.
Tribunal observed that Assessee had indeed filed all relevant documents before lower authorities, that opting out of email communication was expressly stated in Form 35, & that CIT(A) issued notices only via email. Tribunal held that principles of natural justice were violated. Since the investment-source explanation & documents were already on record, another opportunity was justified.
