Non-receipt of Orders Due to Email and Mobile Contact Details of CA Being Used Instead of Taxpayer: ITAT Condones Delay

The assessee is a private limited company engaged in software-related services. Reassessment proceedings under Section 147 were initiated for AYs 2013–14 to 2016–17 based on information from the Investigation Wing regarding cash deposits in the company’s bank accounts. For AY 2017–18, the assessment was completed ex parte under Section 144 based on alleged cash deposits of ₹5.67 crore during the demonetization period in an HDFC Bank account. The CIT(A), NFAC passed ex parte orders without adjudicating on merits or properly considering submissions and evidence filed by the assessee.

The assessee contended that the delay was due to non-communication of orders to the assessee, as appellate communications were sent to the engaged Chartered Accountant. Reassessment proceedings were initiated mechanically using identical reasons for multiple years, without independent application of mind.

As per the Assessee, the AO relied solely on borrowed satisfaction and did not verify or inquire independently. CIT(A)’s ex parte orders ignored detailed legal and factual submissions uploaded with acknowledgments. Additions were made without justification under Sections 68, 69, and 69A, based only on unexplained bank deposits.

Tribunal Order:

The tribunal found the delay of 40 days in filing the appeals to be supported by reasonable cause, citing non-receipt of orders due to email and mobile contact details of counsel being used instead of the company’s own. The matter was remanded back to the Assessing Officer.