2024 (7) TMI 431

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....nst the assessment order passed by the Assessing Officer (AO) under Section 143(3) read with Section 254 of the Income Tax Act, 1961 ("the Act") for the Assessment Years (AYs) 2005-2006 and 2006-2007. Facts of the case: 2. The assessment of the assessee under Section 143(3) of the Act was completed on 15.12.2006 for the AY 2005-2006 and on 23-12-2008 for the AY 2006-2007, determining the total income at Rs. NIL against the returned loss of Rs. 51,62,590/- for the AY 2005-2006. For the AY 2006-2007 the total income was determined at Rs. 1,56,15,514/- after setting off of loss of Rs. 42,55,953/- 3. In both the cases, Ld.CIT(A) upheld the AO's orders. Assessee preferred appeal before the tribunal in case of both the assessment years. Th....

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....ssessee company has not been able to prove that the borrowings were out of interest free fund. 6. The assessee company had submitted detailed information and submissions during the course of assessment proceedings which have not been considered by the CIT (A) while dismissing the order on account of non-attendance. 7. The assessee company craves, leave to add, alter or amend any of the grounds mentioned above." For ITA No. 1067/Ahd/2023 "1. The Learned CIT(Appeals) erred in passing the order without waiting for the response by the assessee company. 2. The Email ID to which the notices were sent by the Learned CIT(Appeals) were inoperative due to closure of the business operations by the company since past many years. 3. The Learn....

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....es were sent to an incorrect email address, which led to the non-receipt of the notices by the Assessee. This procedural lapse denied the Assessee a fair opportunity to be heard. The principle of natural justice mandates that an assessee must be given an adequate opportunity to present their case. 5.1. The judicial pronouncements consistently emphasize the importance of proper service of notices as a fundamental requirement for the validity of proceedings under the Income Tax Act, 1961. Extrapolating these principles to the context of email communications, it is evident that incorrect email addresses would constitute improper service, thereby invalidating any subsequent actions based on such notices. Courts have repeatedly held that proced....