Shahnawaz Mustakkhan Pathan Vs ITO (ITAT Ahmedabad)
Email Notices Ignoring Assessee’s Option- Ex-Parte Dismissal Set Aside – Tribunal Orders Fresh Hearing
Assesee filed return of income for AY 2012-13 declaring ₹13,160. During assessment, AO noted that Assessee had undertaken transactions worth ₹75.97 crore on the Multi Commodity Exchange. As Assessee failed to properly explain or produce supporting records, AO estimated profit @0.5% of turnover & made addition of ₹37,98,608/- to total income.
On appeal, CIT(A) dismissed the case ex-parte, observing that Assessee did not comply with notices of hearing. However, in Form 35, Assessee had specifically opted that hearing notices should not be served through email. Despite this, all notices were issued only through email, which remained uncomplied with, resulting in dismissal of appeal without affording proper hearing.
Before Tribunal, it was argued that ex-parte dismissal was unjustified since the option given in Form 35 was ignored. Tribunal noted that Form 35 indeed contained a categorical mention that notices were not to be sent by email, but still CIT(A) proceeded to serve notices via email only. This amounted to violation of principles of natural justice, as Assessee was deprived of fair opportunity of being heard.
Considering these facts, Tribunal set aside the order of CIT(A) & restored the matter back for fresh adjudication on merits, with a direction to grant due opportunity of hearing to Assessee.
