Rajyeshwar Retail Trade Systems Pvt. Ltd. Vs ACIT (ITAT Indore)
The ITAT, Indore Bench, addressed six appeals filed by Rajyeshwar Retail Trade Systems Pvt. Ltd. challenging six separate ex-parte orders passed by the CIT(A) for Assessment Years (AYs) 2013-14 to 2018-19. These orders arose from assessments completed u/s 147 read with Section 144 (best judgment assessment for non-compliance) of the Income-tax Act, 1961.
The core issue was the completion of both the assessment and first-appeal proceedings ex-parte due to the taxpayer’s non-representation. The taxpayer’s counsel argued that the notices issued by the AO were sent during the COVID-19 pandemic, making compliance difficult. Further, in the appeal stage, the CIT(A) used an old, inoperative ‘hotmail’ email ID that the system had automatically picked up, preventing the taxpayer from receiving hearing notices.
On the merits, the taxpayer highlighted “hefty additions,” including an allegedly illegal addition of “Loans & Advances” which were properly recorded in its books.
The ITAT accepted the taxpayer’s submissions. Adhering to the principle of natural justice and noting that no prejudice would be caused to the Revenue, the Tribunal ordered the restoration of all six matters to the file of the AO for de novo (afresh) adjudication. The AO was directed to provide a necessary opportunity of hearing. In return, the taxpayer was directed to remain vigilant and ensure participation without seeking unnecessary adjournments.
