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Facts
The assessee filed a return declaring loss for A.Y. 2017-18, but the case was selected for scrutiny. Due to non-compliance, the Assessing Officer completed an ex-parte assessment under Section 144, making an addition under Section 68. The Learned CIT(A) also dismissed the assessee's appeal ex-parte, as notices were allegedly sent to an incorrect email ID.
Held
The Tribunal observed that notices were sent to a wrong email address by both the AO and CIT(A), leading to the denial of a proper opportunity of being heard. With no objection from the Departmental Representative, the Tribunal deemed it appropriate to restore the matter to the Assessing Officer for a fresh de novo assessment, ensuring the assessee is provided a reasonable opportunity of being heard.
Key Issues
Whether the ex-parte assessment and appeal dismissal were valid when notices were sent to an incorrect email address, thereby violating the principles of natural justice and denying the assessee an opportunity of being heard.
Sections Cited
250, 144, 68, 115BBE, 10(1), 234B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI
Before: SHRI VIMAL KUMAR & SMT. RENU JAUHRI
The above captioned appeal is preferred before the Tribunal against the order dated 27.06.2025, passed by Ld. CIT(A), National Faceless Appeal Centre (for short, NFAC), Delhi u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as, “Act”), in Appeal No. CIT(A), Delhi- 8/10279/2019-20 for A.Y. 2017-18. The Assessment was framed by Assessing Officer (for short, AO) u/s 144 of the Act vide his order dated 22.11.2019.
1 | P a g e M/s Sharpline Network Pvt Ltd VS. ITO Ward 23(1) 2. The grounds of appeal are as under: “(a) That on the facts and circumstances of the case, the Ld. CIT(A) has erred in confirming action of the assessing officer (Hereinafter referred to as “Ld. AO”) in framing the assessment order u/s 144 of the Income Tax Act, 1961 and without allowing proper opportunity of being heard as such the same is against the principles of natural justice. (b) That on the facts and circumstances of the case, the Ld. CIT(A) has erred in confirming action of the Ld. AO in making addition of Rs. 56,21800/- u/s 68 read with section 115BBE of the I.T. Act, 1961. (c) That on the facts and circumstances of the case, the Ld. CIT(A) has erred in Ld. AO has erred both in law and on facts in not allowing exemption of Rs. 56,21,800/- u/s10(1) of the Income Tax Act, 1961 towards agriculture income earned by the assessee during A.Y. 2017-18. (d) The Assessing Officer has erred in charging interest at Rs. 13,71,200/- u/s 234B of I.T. Act, 1961.
(e) The above grounds of appeal are without prejudice to one another. (f) The appellant craves the right to add, amend, alter, withdraw or forgo any ground or grounds of appeal before or at the time of hearing. ”
Brief facts of the case are that the assessee filed return for A.Y. 2017-18 on 27.10.2017 declaring loss of Rs. 20,20,944/-. The case was selected for scrutiny and the notices were issued by the Ld. AO. In the absence of any compliance by the assessee, the Ld. AO proceeded to finalise the assessment u/s 144 of the Act at an income of Rs. 56,21,800/-, vide order dated 22.11.2019.
Aggrieved, the assessee filed an appeal before the Ld. CIT(A) as no compliance was made during the appellate proceedings as well as the appeal of the assessee was dismissed ex-parte, vide order dated 2 | P a g e
Before us, Ld. AR has submitted that the assessee did not receive any of the notices issued by the Ld. AO as well as Ld. CIT(A) as these were being sent on wrong e-mail id, namely, ritika@basco.in Ld. AO has provided the current e-mail id of the assessee and has requested for remanding the matter back to Ld. AO for de novo assessment. The new/current e-mail id provided by the Ld. AR is as under: arunnaresh.ca@gmail.com
The Ld. DR has also not objected to the said proposition.
After hearing both the parties and in the interest of justice, we deem it appropriate to restore the matter back to Ld. AO for fresh decision on merits after providing reasonable opportunity of being heard to the assessee.
In the result, the appeal is allowed for statistical purposes.
Order pronounced in the Open Court on 15-12-2025.