East And Apartments CGHS Limited Vs ITO (ITAT Delhi)
Wrong Email, No Hearing: Delay Must Yield to Justice – ITAT Delhi Revives CGHS Appeal & Orders De-novo Assessment
Assessee, a large Co-operative Group Housing Society with about 1300 members, faced ex-parte assessment u/s 144 r.w.s. 147 & 144B, resulting in addition of ₹2.44 crore u/s 69A on account of alleged cash deposits & term deposits. Appeal before CIT(A)-NFAC was dismissed in limine for delay of 159 days, without examining merits.
ITAT Delhi allowed Assessee’s appeal. Tribunal noted that statutory notices u/s 148A(b), show-cause & NFAC communications were sent to a wrong email ID, not belonging to the society or its CA, resulting in complete denial of opportunity. Consequently, assessment was framed ex-parte & appeal delay occurred due to lack of knowledge of proceedings.
Relying on SC in Collector, Land Acquisition vs MST Katiji (167 ITR 471), ITAT held that delay deserves liberal condonation when refusal results in miscarriage of justice. Tribunal emphasised that effective hearing u/s 250 is not a formality but a sine qua non, and proceedings based on wrong electronic service violate principles of natural justice.
Accordingly, ITAT condoned the delay, set aside CIT(A)’s dismissal order, quashed the ex-parte consequences, and restored the matter to AO for de-novo adjudication after granting proper opportunity. Assessee directed to appear before AO within 60 days.
FULL TEXT OF THE ORDER OF ITAT DELHI
