Electronic service of notice invalid if assessee prefers to opt for physical notice: ITAT

In the matter of Chequer Marketing Pvt. Ltd vs Asstt. Commissioner of Income-tax (ACIT) the Income Tax Appellate Tribunal (ITAT) has held that where an option is sought from an assessee in form no. 35, as to the mode of service of notice, and if the assessee prefers to opt for physical notice only, then electronic notice issued cannot be considered to be due issuance and service of the notice.

Thus, the Bench of Narendra Kumar Billaiya and Anubhav Sharma is of the considered opinion that the assessee company was not given a reasonable opportunity of hearing and to contest on merits.

Thus files of the assessee were restored to CIT(A) for giving an opportunity of hearing to assessee company and decide afresh.