Notice served on email ID of former Tax Consultant of the assessee amounts to Non-Service of Notice: ITAT

In the facts of the present case, it is clearly demonstrated that the hearing notices were been sent to the email “[email protected]” which was belong to the former Tax Consultant of the assessee.

Further, no physical notices were been served upon the assessee, thereby even to comply to the 153C notices itself by the assessee.

Further perusal of the ex-parte assessment orders make it clear that the assessee has never filed Return of Income in response to 153C notices, however, the Assessing Officer concluded the 153C assessments based on the original returns filed under Section 139(1) of the Act by the assessee for five Assessment Years and made additions only two Assessment Years 2016-17 and 2017-18 based on some seized materials.

ITAT Order:

In our considered opinion, the assessee could not said to be in default, when the assessee was not served with the notices. The assessee also pleaded that he is not aware of the faceless assessment proceedings and the ITBA portal of the Income Tax Department which has resulted in filing statutory appeals before the CIT(A) with a delay of 96 days. Thus, without proper service of notices to the assessee, the assessee cannot be levied with penalty under Section 271(1)(b) for non-compliance of such notices. For the above reasons we hold that the levy of penalty under Section 271(1)(b) is unjustified and therefore, the same are deleted.

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