2025 (10) TMI 194 - AT - Income Tax

ITBA portal notices not valid service under s.282(1) read with r.127(1); ex parte dismissal set aside, remand

ITAT, Cochin (AT) held that notices of hearing issued via the ITBA portal do not constitute valid service under s.282(1) of the IT Act read with r.127(1) ... CIT(A) dismissed the appeal exparte for non-prosecution of the appeal by the appellant - notices of hearing were issued through ITBA portal - valid method and manner of service of notice u/s 282(1) -denial of opportunity of hearing to the assessee HELD THAT:- From the orders the CIT(A)’s it is clear that notices of hearing were issued through ITBA portal. In our considered opinion, it is not a valid method and manner of service of notice as specified under the provisions of section 282(1) of the Income-tax Act, 1961 Act and Rule 127(1) of the Income-tax Rules, 1962. Therefore, it is crystal clear that the notices were not served upon the appellant. As decided in Munjal BCU Centre of Innovation and Entrepreneurship [2024 (3) TMI 479 - PUNJAB & HARYANA HIGH COURT] wherein after making reference to provisions of 282(1) held that service of notice through ITBA portal is not valid service and remanded the matter to AO for denovo disposal of case. Thus, remand the matter back to the CIT(A) with the direction to dispose the appeal after affording opportunity of hearing to the assessee in accordance with law. Appeals arise from ex parte dismissal by the National Faceless Appeal Centre (CIT(A)) for AYs 2012-13 and 2013-14. Original returns showed loss for AY 2012-13 and taxable income for AY 2013-14; assessments under section 143(3) resulted in substantially increased incomes. Appellant's delay in filing the present appeal (132 days) was explained by company inactivity, lack of staff, and medical treatment; the delay was condoned. Tribunal found notices of hearing issued through the ITBA portal were 'not a valid method and manner of service of notice' under section 282(1) of the Income-tax Act and Rule 127(1) of the Income-tax Rules. Relying on Munjal BCU Centre of Innovation and Entrepreneurship v. CIT (Exemptions) (2024) 463 ITR 560 (P&H), which held that 'service of notice through ITBA portal is not valid service,' the Tribunal remanded the matters to the CIT(A) with directions to dispose of the appeals afresh after affording the assessee an opportunity of hearing. Appeals partly allowed for statistical purposes.