Case Law Details
Jayshree Kamleshkumar Patel Vs ITO (ITAT Ahmedabad)
Introduction: In a remarkable case of Jayshree Kamleshkumar Patel vs ITO, the ITAT Ahmedabad has overturned an ex-parte order passed by the National Faceless Appeal Center (NFAC), Delhi due to non-compliance with the notice service preferences. The assessee, despite making it clear on Form No. 35 that she preferred physical notices over emails, repeatedly received notices via email, to which she did not respond. The result was an ex-parte order that she appealed against, raising important questions about natural justice within the framework of India’s income tax law.
Analysis: The case centred on the interpretation of the notice service method indicated in Form No. 35. Despite the assessee’s clear preference for physical notices, the NFAC sent notices via email. The crux of the case was whether such a practice was in accordance with the principles of natural justice. Furthermore, the case also delved into the consequences of non-response to notices served incorrectly and the accountability of the NFAC in such a situation.
Conclusion: The ITAT Ahmedabad, in its wisdom, decided to overturn the ex-parte order and send the case back to NFAC for re-evaluation, citing the non-compliance with notice service preferences as a critical factor. The decision is not just a win for the assessee, but also sets a precedent for the upholding of natural justice in income tax cases, emphasizing the need for the correct method of service in legal notices and the respect of taxpayers’ preferences.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
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