2026 (1) TMI 41

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(1)(d) erred in not appreciating that during the course of assessment proceedings the various statutory notices (four in numbers) under section 142(1) reminded uncommunicated with the assessee and therefore, the Assessing Officer had passed the ex-parte assessment order under section i 44 of the Act. 2. The Ld. CIT (Appeals) in the facts of the case erred in not appreciating that being aggrieved with the ex-parte assessment order the assessee had filed appeal before the CIT(A) wherein one of the grounds raked up was against the ground concerns with lack of opportunity. 3. The Ld. CIT(Appeals) in the facts of the case while upholding the impugned penalty erred in not appreciating that during the course of assessment proceed....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... assessment under section 144 of the Act on 20.12.2019 and simultaneously initiated penalty proceedings under section 272A(1)(d) for failure to comply with the statutory notices. The AO observed that despite service of notices through the registered e-mail ID and availability of the same on the e-filing portal, the assessee neither furnished the required details nor offered any explanation, and even in response to the show-cause notice dated 22.05.2021, the assessee pleaded ignorance of electronic notices on the ground that he was a proprietor not conversant with computers and that his accountant, who handled the accounts, was on leave due to the COVID-19 pandemic and no physical notices were served. The AO rejected the said explanation, ho....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on the orders of the lower authorities. 8. We have heard the rival contention and perused the material available on the record. In the present case the core issue is whether the penalty under section 272A(1)(d) is sustainable when the notices were only uploaded on the e-filing portal. The assessee has contended that these notices remained uncommunicated as they were not backed by email or SMS alerts. We find that this issue is squarely covered by the judgment of the Hon'ble Punjab & Haryana High Court in the case of Munjal BCU Centre of Innovation and Entrepreneurship vs. CIT (Exemptions) [2024] 463 ITR 424 (P&H). In the said judgment, the Hon'ble High Court categorically held that an assessee cannot be expected to keep the porta....