Ramkrushna Narayan Kanzode Vs ITO (ITAT Nagpur)
Failure to Serve Physical Notice Fatal – Tribunal Remands Appeal to CIT(A)
ITAT Nagpur remanded the matter back to CIT(A) after finding that the appeal was dismissed ex parte in violation of principles of natural justice. AO had framed assessment u/s 143(3) r.w.s. 153C on 28.12.2018, making addition of Rs. 34,77,643/- towards disallowance of long-term capital gain. Assessee filed appeal on 31.01.2019 but failed to comply with multiple notices issued by CIT(A) in October, December 2024 & January–February 2025. Consequently, CIT(A) dismissed the appeal on 27.02.2025, upholding the addition.
Before Tribunal, it was highlighted that Assessee was a 7th standard educated auto driver engaged in pick & drop of school children, with no email ID & had specifically opted for physical notices. Despite this, CIT(A) issued notices through email, which Assessee could not access. Tribunal observed that a long gap of more than 6 years existed between institution of appeal & disposal by CIT(A), which itself created doubt whether notices were properly served. Tribunal held that non-service of notices in chosen mode deprived the Assessee of reasonable opportunity.
Accordingly, Tribunal quashed CIT(A)’s ex parte order & remanded the matter for fresh adjudication with directions to afford adequate opportunity of hearing. It also cautioned the Assessee to comply with future notices & clarified that no further leniency would be shown in case of default.
