Irien Veigas Vs ITO (ITAT Bangalore)
Ex-Parte Addition for Alleged Property Purchase Set Aside-Matter Remanded as Notices Sent to Wrong Email ID -ITAT Bangalore
AO alleged that Assessee purchased an immovable property in AY 2018-19 but did not file return. Since assessee failed to respond to notices, AO treated the investment as unexplained u/s 69 and passed ex-parte assessment. CIT(A), NFAC also confirmed ex-parte, dismissing appeal on limitation & merits.
Assessee contended she never purchased property & produced sale deed dated 07.06.2017 showing purchase was actually in name of M/s. Kanchana Automobiles Pvt. Ltd., not in her name.
Procedural Issue: Notices & orders were wrongly sent to the email ID of erstwhile consultant ([email protected]) instead of assessee’s registered email ([email protected]). Due to this, assessee was unaware of proceedings and could not respond, causing delay of 106 days in appeal filing. Tribunal condoned delay considering sufficient cause.
Tribunal’s Findings/Decision
- There was force in assessee’s claim that she had not purchased the property, since sale deed produced was in company’s name.
- AO did not furnish details of the alleged sale deed forming basis of reopening u/s 148.
- Non-service of notices to correct email deprived assessee of reasonable opportunity of being heard.
- Both AO and CIT(A) orders were thus vitiated.
- Orders of AO & CIT(A) set aside.
- Matter remanded to AO for denovo consideration after providing assessee with proper notice through correct email & opportunity to explain.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
