GURU PRASAD SANGHI,HYDERABAD vs. INCOME TAX OFFICER, WARD-8(1), HYDERABAD

The AO vide order passed under section 147 r.w.s 144 r.w.s 144B of the Act, dated 15/05/2023, assessed the income of the assessee at Rs. 1,68,79,572/- after making two additions, viz., (i) addition of estimated net profit on undisclosed turnover: Rs.1,05,94,424/-; and (ii) addition of unexplained cash deposits under section 69A of the Act: Rs. 54,85,148/-.

Aggrieved, the assessee carried the matter in appeal before the CIT(A). Although the assessee was put to notice about the fixation of the appeal on five occasions ie., notices dated 19/09/2024, 04/10/2024, 17/10/2024, 25/10/2024 and 07/05/2024, but had failed to participate in the appellate proceedings, therefore, the CIT(A) held a conviction that he was not interested to pursue the appeal. Accordingly, the CIT(A) finding no infirmity in the decision taken by the AO sustained the addition of Rs. 1,60,79,572/- and dismissed the appeal.

Assessee, being aggrieved with the order of the CIT(A) has carried the matter in appeal before us.

Sri S.K. Gupta, Advocate, the Learned Authorized Representative (for short “Ld. AR”) for the assessee, at the threshold of hearing of the appeal, submitted that the assessee was never validly put to notice on either of the five occasions on which the appeal is stated to have been fixed for hearing, therefore, for no fault on his part he had been divested of an opportunity to participate in the proceedings before the CIT(A) and defend his Guru Prasad Sanghi vs. ITO case. Elaborating further on his contention, the Ld. AR submitted that though the assessee in his Memorandum of Appeal, ie., “Form- 35” had specifically provided his email address ie., “gurusanghi@gmail.com” but a perusal of the CIT(A) order revealed that all the notices intimating the fixation of hearing of the appeal were delivered to the email ie., “choul_narayan@holmail.com”. The Ld. AR submitted that as the notices intimating the fixation of the appeal were dropped in an unrelated email Id viz., “choul_narayan@holmail.com”, therefore, the assessee remained oblivion about the appellate proceedings and had suffered the dismissal of the appeal vide an ex-parte order.

Per contra, Sri Gurpreet Sinch, the Learned Departmental Representative (for short “Ld. DR”) supported the orders of the lower authorities. However, the Ld. DR failed to rebut the assessee’s counsel claim that the notices intimating the fixation of the appeal before the CIT(A) were dropped by the latter’s office in an unrelated email Id i.e., “choul_narayan@holmail.com”.

Admittedly, it is a matter of fact borne from the record that all the five notices intimating the fixation of hearing of the appeal ie., notices dated 19/09/2024, 04/10/2024, 17/10/2024, 25/10/2024 and 07/05/2024 were dropped/delivered to the email account, viz., “choul_narayan@holmail.com”. On a perusal of the Memorandum of Appeal, ie., “Form-35” we find that the email address provided by the assessee is “gurusanghi@gmail.com”.

Considering the aforesaid facts, we concur with the Ld. AR that as neither of the notices intimating the fixation of hearing of the appeal was delivered/dropped in the email address provided by the assessee ie., “gurusanghi@gmail.com”, but on the contrary had been delivered at unrelated email account i.e., “choul_narayan@holmail.com”, therefore, the assessee for no fault on his part had remained divested of an opportunity of participating in the appellate proceedings and had suffered an ex-parte dismissal of his appeal. We are unable to persuade ourselves to Guru Prasad Sanghi vs. ITO subscribe to the dismissal of the present appeal in the backdrop of the aforesaid facts, and, thus, set aside the matter to the file of the CIT(A) with a direction to readjudicate the appeal. Needless to say, CIT(A) shall afford a reasonable opportunity of being heard to the assessee in the course of the set-aside proceedings.

Before parting, we may herein observe that the CIT(A)’s office shall hereinafter forward the notices intimating the fixation of hearing of the appeal in the course of the set aside proceedings at the email address opted by the assessee in Form-35 ie., gurusanghi@gmail.com.

Resultantly, the appeal filed by the assessee is allowed for statistical purposes in terms of our aforesaid observations.