Pavan Kumar Vs ITO (ITAT Bangalore)
Notices Went to Spam Folder- Bangalore ITAT Gives Fresh Chance in Reassessment
The Bangalore ITAT granted relief to an assessee whose reassessment proceedings resulted in additions towards long-term capital gains, salary income and credit card payments after the assessee failed to respond to notices allegedly routed to the spam folder of his email account. The Tribunal condoned the delay and restored the matter back to the AO for fresh adjudication in the interest of substantial justice.
The assessee had not filed a return of income for AY 2015-16. Based on information regarding sale of immovable property, the department initiated reassessment proceedings alleging escapement of capital gains income. The AO also treated salary income and payments towards credit card bills as escaped income and unexplained expenditure respectively. Notices u/s 148A(b), 148 and 133(6) were issued to the assessee, purchaser of property and employer. Since the assessee did not respond, the AO completed assessment by making additions towards long-term capital gains, salary income and unexplained expenditure u/s 69C.
Before the CIT(A), the assessee filed appeal with delay of 97 days explaining that all departmental notices and communications had gone into the spam folder and therefore the assessee remained unaware of the reassessment proceedings as well as the assessment order. However, the CIT(A) rejected the explanation and dismissed the appeal on limitation grounds.
The ITAT observed that the assessment had been completed ex-parte u/s 144 and that denying an opportunity to contest the additions on merits would put the assessee in a disadvantageous position. Considering the explanation regarding spam-folder communications and the need to render substantial justice, the Tribunal condoned the delay and set aside the orders of lower authorities.
The matter was remitted back to the AO for de novo consideration with liberty to the assessee to furnish documents and explanations regarding capital gains, salary income and alleged unexplained expenditure towards credit card payments
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 18/09/2025 in respect of the A.Y. 2015-16.
