Case Law Details
Chequer Marketing Pvt Ltd Vs ACIT (ITAT Delhi)
Introduction : The case of Chequer Marketing Pvt Ltd Vs Assistant Commissioner of Income Tax (ACIT), as determined by the Income Tax Appellate Tribunal (ITAT) in Delhi, throws light on the key role the mode of service of notices plays in tax appeals. The central issue in this case was the validity of electronic notice service when the assessee expressed a preference for physical notices.
Analysis : Chequer Marketing Pvt Ltd challenged the appeal disposal by the CIT(A) on the grounds of inadequate service of notice and lack of sufficient opportunity for hearing. The company received several hearing notices through the ITBA Portal on its registered email address in 2021, but claimed not to have received them.
In Form No. 35, the company had specified that it did not want to receive notices or communications via email. The company’s Director, an 82-year-old man, was not acquainted with electronic communications.
The learned DR stated that issuing notices by email was mandatory. However, the ITAT took a contrary view. The tribunal found that if an assessee, in Form No. 35, opts for physical notices only, then an electronic notice cannot be considered due issuance and service of the notice.
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