Bhaane Studio Private Limited Vs ACIT (ITAT Delhi)
ITAT Delhi Restores Ex-Parte Appeal – Delay Condoned as CIT(A) Sent Notices to Wrong E-Mail
ITAT Delhi Restores Ex-Parte Appeal – Delay Condoned as CIT(A) Sent Notices to Wrong E-Mail Assessee’s appeal before CIT(A) was dismissed ex parte on 08.12.2023, sustaining addition u/s 68. Assessee later explained before ITAT that the delay occurred because the CIT(A)’s order and communications were sent to an e-mail ID belonging to a former employee ([email protected]) who had left the organisation in 2023. Assessee never received the order & came to know only upon intimation from the Dept regarding outstanding demand, after which it obtained the order copy & filed appeal before ITAT.
Tribunal accepted the explanation as reasonable cause & condoned the delay. It also observed that though Assessee had opted in Form 35 to not receive notices by e-mail, CIT(A) nonetheless sent all communications to the e-mail ID, resulting in the ex-parte order. Referring to the Ahmedabad Bench decision in Maheshkumar Rajkaranbhai Shah (ITA No.1167/Ahd/2025, order dated 04.07.2025), it held that such ex-parte disposal without proper service of notice violates principles of natural justice. Accordingly, ITAT set aside the ex-parte order of CIT(A) & restored the matter for fresh adjudication on merits after providing adequate opportunity of hearing.
