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Facts
The assessee, an Association of Persons (AOP), did not file returns of income for Assessment Years 2019-20 and 2020-21. The Assessing Officer completed assessments by making significant additions for unexplained money, interest on fixed deposits, contract receipts, and unexplained investment. The Ld. CIT(A) dismissed the assessee's appeals ex-parte for both assessment years.
Held
The Income Tax Appellate Tribunal found that the Ld. CIT(A) dismissed the appeals ex-parte because the hearing notices were sent to an incorrect email ID, not the one provided by the assessee in Form No.35. The Tribunal held that this denied the assessee a reasonable opportunity of being heard and, upholding principles of natural justice, remitted the matter back to the Ld. CIT(A) for fresh adjudication after affording due opportunity.
Key Issues
Whether the Ld. CIT(A) was justified in dismissing the assessee's appeals ex-parte when notices were sent to an incorrect email address, thereby denying a reasonable opportunity of being heard in accordance with the principles of natural justice.
Sections Cited
147, 144, 144B, 69A, 115BBE, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
ORDER PER S BALAKRISHNAN, AM: These appeals filed by the assessee are directed against the orders of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (in short “Ld. CIT(A)”) in DIN & Order No. ITBA/NFAC/S/250/2025-26/1079595804(1) dated 13/08/2025 and ITBA/NFAC/S/250/2025-26/1079595996(1) dated 13/08/2025 arising out of the orders passed u/s. 147 r.w.s 144 read with section 144B of the Income Tax Act, 1961 (in short “the Act”), dated 28/02/2024 and 28/02/2025 for the AY 2019-20 and 2020-21 respectively. Since the grounds raised in these appeals are identical, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under.
Brief facts of the case are that the assessee is an AOP (Association of Persons) and did not file the return of income for the AY 2019-20 and 2020-21. Assessment in the case of the assessee was completed by the Assessing Officer by making additions for both the assessment years as under : 2019-20 Unexplained money u/s 69A r.w.s. 115BBE 102,59,90,200 of the Act Interest on fixed deposits 3,03,62,809 Contract Receipts 18,35,700 2020-21 Business profit (@8% of business turnover/ 2,00,46,107 gross receipts i.e. Rs.25,05,76,339/-) Interest on fixed deposits 5,81,80,051 Unexplained investment in car 19,26,000 3. Aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A). The Ld. CIT(A) dismissed the appeals of the assessee ex-parte for both the assessment years by observing as under: “6……..apparently there exists no infirmity in the order of the AO and thereby appellant various contentions/GOA as advanced to hold the order of AO as bad in law is to be treated as not maintainable and accordingly appellant appeal for A.Y.2019-20 is to be treated as dismissed as per facts available on record on merits as well, notwithstanding its dismissal for want of prosecution as discussed supra.” 4. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal by raising the following grounds of appeal.
1. The order of the Ld. CIT(A) is contrary to the facts and also the law applicable to the facts of the case.
2. The Ld. CIT(A) is not justified in deciding the appeal ex-parte.
3. Without prejudice to the above, the learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.102,59,90,200 made by the assessing officer u/s 69A of the Act by considering the alleged investment in fixed deposits as unexplained money.
4. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.3,03,62,809 made by the assessing officer towards interest on fixed deposits.
5. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.18,35,700/- made by the assessing officer towards contract receipts.
6. Any other ground that may be urged at the time of appeal hearing.”
5. At the outset, the Ld. AR submitted that the Ld.CIT(A) is not justified in dismissing the appeals filed by the assessee ex-parte. The Ld. AR invited our attention to the paper book Pages 31 to 65, wherein, hearing notice u/s 250 of the Act was sent to the email id md_apewidc_hyd@ap.gov.in, CC: deevr63@gamil.com, but not sent to the email id provided in Form No.35, i.e. gmf.apewidc@gmail.com, thereby preventing the assessee to appear before the Ld.CIT(A) to put forth its contention and substantiate its case. He, therefore, pleaded to afford a reasonable opportunity of being heard to the assessee to present its case in accordance with law.
6. Per contra, the Ld. DR relied on the orders of the Ld. Revenue Authorities.
We have heard both the sides and perused the orders of the Ld.Revenue Authorities as well as the material available on record. It is evident that the notices were not sent to the email id provided by the assessee in Form No.35 filed before the Ld.CIT(A), thereby the assessee was not aware of the issuance of notices and hence prevented to appear before the Ld.CIT(A) and put forth its case. We, therefore, keeping in view the principles of natural justice remit the matter back to the file of the Ld.CIT(A) to afford a reasonable opportunity of being heard to the assessee. The assessee is also directed to adhere to the notices issued by the revenue authorities and cooperate during the proceedings.
In the result, appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 28th November, 2025. S (एस बालाकृष्णन) (रवीश सूद) (S BALAKRISHNAN) (RAVISH SOOD) न्यायिक सदस्य/JUDICIAL MEMBER लेखा सदस्य/ACCOUNTANT MEMBER d/- Visakhapatnam, Dated 28.11.2025. L.Rama/SPS आदेश की प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-
1. 1. निर्धाररती/The : M/s Andhra Pradesh Education and Welfare Infrastructure Development Corporation, Assessee D.No.9-76, Vaddeswaram, Guntur 2. रधजस्व/ The Revenue : The Income Tax Officer, Ward-2(1), Lakshmipuram Main Road, Guntur 3. The Principal Commissioner of Income Tax, Visakhapatnam 4. नवभधगीय प्रनतनिनर्, आयकर अपीलीय अनर्करण / DR,ITAT, Visakhapatnam.