Service of notice under the Income Tax Act via email before the relevant rules were established is invalid, rendering the entire assessment void.

ORDER

Per: KeshavDubey, J.M

This appeal at the instance of the assessee is directed againstthe ADDL/ JCIT(A)’s Order dated 30.03.2024 vide DIN & order No. ITBA/APLS/S/250/2003-24/10611372018(1) passed under Section 250 of the Income Tax Act, 1961 (the Act) for the Assessment Year (AY) 2014-15.

2. The assessee has raised the following grounds of appeal: -

“1. The Order of the learned Commissioner passed under section 250 of the Act is opposed to law, equity, weight of evidence, probabilities and the facts and circumstances in the Appellant's case.

2. The Appellant denies to be assessed to tax on total income as determined by the learned AO of Rs.7,33,880/- as against the total income reported by the Appellant of Rs.1,76,380 on the facts and circumstances of the case.

3. The learned Commissioner of Income-tax (Appeals) erred in upholding that the service of notice through email is a valid notice on the basis that no response was filed despite the Appellant placed written submissions on record in the facts and circumstances of the case.

4. The learned Commissioner of Income-tax (Appeals) erred in upholding that order of assessment passed u/s 143(3) in the absence of any evidence of notice issued/served through email produced by the AO despite the Appellant discharged his onus by producing the affidavit for non-receipt of notice in the facts and circumstances ofthe case.

5. The learned Commissioner of Income-tax (Appeals) erred in upholding that the service of notice through email is a valid notice considering that the applicable rules were notified vide Notification No.89/2015/ F. No. 133/79/2015-TPL dated 2 December 2015 which is after the date of the service of notice contemplated by the AO being 24 Sept 2015.

6. The learned Commissioner of Income-tax (Appeals) ought to have adjudicated the merits of the matter and hence failed to exercise the powers conferred under section 250 of the Act in the facts and circumstances of the case.

7. The Appellant craves leave to add, alter, delete or substitute any of the grounds urged above.

8. In the view of the above and other grounds that may be urged at the time of the hearing of the appeal, the Appellant prays that the appeal may be allowed in the interest of justice and equity.”

3. The brief facts of the case are that the assessee being an individual, filed his return of income for AY 2014-15 on 23.06.2014 declaring total income of Rs.1,76,380/- under the head ‘Salary’& claimed exemption under the head Long term capital gains. The return was then processed u/s. 143(1) of the Act on 15.04.2015. The assessee was employed with M/s. Gem Superstructures Pvt. Ltd. during the FY 2013-14 as observed by the AO. Thereafter the case was selected under CASS and notices were issued calling for details in support of the return filed by the assessee.During the course of assessment proceedings the assessee claimed that no mandatory notice u/s 143(2) of the Act was served on the Assessee whereas the AOobserved in his order that notice u/s 143(2) of theAct was in fact issued on 7/9/2015 posting for the hearing on 23/09/2015. Further the notice dated 07/09/2015 was also served through e-mail on 24/09/2015 posting the case for hearing on 28/09/2015 as the earlier notice u/s 143(2) returned unserved by the Postal Authorities. Further during the course of Assessment proceedings the AO directed to furnish details with supporting sources for cash deposits in the SB account with ShamraoViottal Cooperative (SVC) bank amounting to Rs.10.98 lakhs during the F.Y 2013-14. In response to which the assessee stated the same to be out of the family agriculture income along with the evidences. Further the AO also noticed that in SB A/c No. 64021635180 wit