BLUEFROG MOBILE TECHNOLOGIES PRIVATE LIMITED,VISAKHAPATNAM vs. DCIT, CIRCLE- 1(1), VISAKHAPATNAM

Facts

The assessee company, Bluefrog Mobile Technologies Private Limited, challenged an addition of Rs. 4,98,26,305/- made by the Assessing Officer for Assessment Year 2020-21 due to a discrepancy between turnover reported in Form 26AS and its profit and loss account. The CIT(A) upheld this addition ex-parte after the assessee failed to participate in the appeal proceedings, which the assessee attributed to not receiving proper notice.

Held

The Tribunal found that the assessee had specifically opted out of email communication in its Form-35 and was not physically served with a notice for the CIT(A) hearing. Consequently, the assessee was deprived of a reasonable opportunity of being heard. The Tribunal set aside the CIT(A)'s order and restored the matter for fresh adjudication, directing the CIT(A) to afford the assessee a proper opportunity to present its case and evidence.

Key Issues

Whether the CIT(A)'s ex-parte order was valid when the assessee was not validly served notice for the appeal hearing, thus denying the principles of natural justice.