Raj Rani Vs ITO (ITAT Delhi)
In the case of Raj Rani vs. Income Tax Officer (ITO), the Income Tax Appellate Tribunal (ITAT) Delhi bench set aside an ex-parte assessment order after it was found that assessment notices were not served to the assessee. The assessee challenged an order by the Commissioner of Income Tax (Appeals) [CIT(A)] which upheld a tax addition of ₹49,02,500 related to cash deposits in a Punjab National Bank account. The assessee argued that the notices from the Assessing Officer (AO), under Section 147 of the Income Tax Act, were never received, as they lacked her email address. As a result, the assessee was unable to participate in the assessment proceedings. Additionally, the CIT(A) dismissed her appeal without considering her response submitted on March 13, 2024, two days after the deadline set by the CIT(A) notice.
The ITAT reviewed the circumstances, including the lack of notice service and the fact that the assessee submitted a reply, though late. The Tribunal acknowledged the assessee’s right to be heard and deemed it appropriate to remand the case to the AO for a fresh assessment. ITAT directed the assessee to provide a current, functional email address for future notice delivery and advised her to respond promptly once notified. This decision emphasizes the importance of proper notice service in tax assessments and the right of taxpayers to a fair hearing before orders are finalized.
