Benit & Co. Electronics Pvt. Ltd Vs ITO (ITAT Chennai)
ncome Tax Appellate Tribunal (ITAT) Chennai, in a recent ruling, has set aside an ex-parte order passed by the Commissioner of Income Tax (Appeals)/NFAC against Benit & Co. – Electronics Pvt. Ltd. for the Assessment Year 2017-18. The Tribunal’s decision, pronounced on May 26, 2025, hinged on the assessee’s claim that notices from the CIT(A) were diverted to the email spam folder, preventing timely responses.
The assessee had appealed the CIT(A)’s order, dated January 12, 2024, with a delay of 313 days. The ITAT condoned this delay after reviewing an affidavit explaining the cause, deeming it a “reasonable cause.”
The core of the assessee’s argument was that the CIT(A) had passed an ex-parte order because the assessee failed to respond to four notices. However, the assessee contended that these notices were inadvertently directed to the “SPAM” folder of their email account, making them unaware of the communications. Consequently, the assessee was unable to submit responses, leading to a dismissal of their appeal without a merits-based hearing. The assessee sought another opportunity to present their case before the CIT(A).
The Departmental Representative opposed granting further opportunity to the assessee.
Upon review, the ITAT acknowledged that the CIT(A) had indeed passed an ex-parte order due to non-response to notices. However, accepting the assessee’s explanation regarding the technical glitch of emails landing in the spam folder, the Tribunal concluded that there was a “violation of natural justice.”
