Venkataraju Chandra Shekar Vs ITO (ITAT Bangalore)
In Venkataraju Chandra Shekar vs ITO, the assessee appealed against an ex-parte order passed by the NFAC for the assessment year 2018-19. The case stemmed from an order under Sections 147 and 144 of the Income Tax Act, 1961, wherein the Assessing Officer (AO) made certain additions based on information received, which the assessee contested. The CIT(A) dismissed the appeal due to the assessee’s non-appearance, citing multiple notices sent to the assessee. However, the assessee argued that these notices were sent to an incorrect email ID, which differed from the one mentioned in Form 35. The ITAT found that the notices were indeed sent to a different email address, which prevented the assessee from being aware of the hearing dates.
The ITAT held that the failure to send notices to the correct email address constituted a valid reason for the assessee’s absence from the proceedings. Moreover, it was noted that the AO had also passed the assessment order ex-parte, further complicating the case. Given these circumstances, the Tribunal decided to remit the matter to the AO for fresh adjudication, allowing the assessee another opportunity to present his case. The reassessment will involve reconsideration of issues, including the treatment of sale proceeds as short-term capital gains and the addition under Section 69. The ITAT’s decision underscores the importance of accurate communication in tax proceedings and grants the assessee a fair chance to respond.
