In a notable order, the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has restored an appeal filed with a delay of 621 days, citing that the assessee, an NRI based in the United States, never received any communication from the Commissioner of Income Tax (Appeals) due to notices being sent to an incorrect email address.
The bench observed that the assessee had consistently claimed that no notice or hearing intimation was received during the appeal proceedings. Tax experts say the ruling highlights the critical importance of sending notices to accurate and updated email addresses, especially under India's expanding faceless appeal system. By law, taxpayers are required to file an appeal within 60 days of the order.
The dispute dates back to an impugned order passed in 2023 under Section 250 of the Income Tax Act, 1961, by the National Faceless Appeal Centre (NFAC) - CIT(A) for Assessment Year 2012-13. The assessee's case was initially selected for scrutiny, leading to an addition of Rs 15.47 lakh by the Assessing Officer in 2019.
The NRI taxpayer challenged the assessment order before the CIT(A) in 2020. However, the appeal was dismissed in 2023 through an ex parte order, citing non-submission of documents and absence of compliance. The taxpayer later argued before the tribunal that the CIT(A) had mistakenly sent all notices to the wrong email ID, resulting in complete non-receipt of communications.
The assessee submitted, "From the records, it appears that the CIT(A) has not issued notices on the provided email, but were issued on the wrong email ID and thus I have not received any of the notices issued."
Taking note of the communication lapse, the ITAT held that the delay of 621 days was justified and restored the appeal for fresh consideration. The tribunal's decision is expected to reinforce procedural accountability and further strengthen the reliability of the faceless appeal mechanism.
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