Alur Gopala Reddy Vs ITO (ITAT Bangalore)
ITAT Bangalore sets aside ex-parte CIT(A) Order as Notices were sent to wrong Email; Restores matter for fresh hearing
Assessee had not filed a return of income originally. Based on information of sale of immovable property to Karnataka Housing Board, the AO initiated reassessment proceedings u/s 147 & issued notice u/s 148. Assessee then filed return declaring capital gains & claimed Section 54F deduction for reinvestment in a new residential house. AO disallowed the deduction citing inadequate proof & passed an adverse order. Assessee appealed, but the CIT(A) dismissed the appeal ex-parte for non-compliance.
Before the Tribunal, Assessee claimed non-receipt of hearing notices from CIT(A) due to them being sent to an incorrect email . He provided screenshots of the correct email ID on the income tax portal & Form 35.
Tribunal observed that CIT(A) issued notices to a wrong email address not listed in Assessee’s profile or Form 35 & held that Assessee was denied a proper opportunity of being heard. Tribunal criticized CIT(A)’s conclusion that Assessee was not interested in pursuing the appeal.
Matter was restored back to CIT(A) for fresh adjudication after giving Assessee a proper hearing & Revenue was directed to send future notices to the correct email ID.
