Reassessment notice u/s 148A(b) served only on e-filing portal without email is invalid under section 282(1) r.w.s. rule 127, violating natural justice; proceedings quashed with remand for fresh hearing.

ORDER

PER BRAJESH KUMAR SINGH, AM:

This appeal has been preferred by the assessee against the order dated 21.04.2025 of the National Faceless Appeal Centre (NFAC) [hereinafter referred to as the ‘Ld. CIT(A)] Delhi, pertaining to Assessment Year 2018-19, arising out of Assessment order dated 17.03.2023 passed under Section 147 r.w.s.144B of the Income-tax Act, 1961(hereinafter referred to as ‘the Act’).

2. Brief facts of the case: The assessee was in receipt of foreign remittances to the tune of the Rs. 1,58,83,009/- in his bank account maintained with the J & K Bank during the F.Y. 2017-18 relevant to the A.Y 2018-19. The assessee submitted before the Ld. AO that he had received an export order for supply of textile item, against the same the assessee had received advance payment amounting to Rs. 1,58,91,562/- on 17th July 2017 and on 10th August 2017 respectively. Further, it was submitted by the assessee that to execute the sale order, the assessee had purchased material from various parties amounting to Rs. 1,75,23,165/- during the year and against this export order, the assessee had supplied some material to party and booked sale amounting to Rs.26,30,620/- during the year. It was further submitted after the export amounting to Rs.26,30,620/- the party had told the assessee to hold the rest of the order and during the year further no other sale was booked. Further, it was submitted that the assessee had disclosed the amount as received under the advance from customer in ITR filed u/s 139(1) and the amount as received was being used to purchase the material and the material so purchased which was not exported was shown in Inventory in filed ITR.

2.1 The AO issued a notice u/s 142(1) of the Act on 17.02.2023 during the assessee to submit further details as mentioned on page no. 3 of the assessment order. It was followed by further letter dated 02.03.2023 and the relevant extract of the same is reproduced as under:

“It is pertinent to mention here that the details of return of income filed by you in the succeeding years are as follows:

As stated by you in your reply dated 02.02.2023 that the balance amount of Rs. 1,32,60,942/- has duly been shown by you in your ROI.

In this regard, you are requested to state that when the said transaction was completed with the concerned party. If the above transaction was completed in succeeding years then why the same amount was not offered by you for taxation purpose as per ROI filed by you, it is revealed that you have filed different ITRs forms in different preceding and succeeding years.

In this regard you are also requested to clarify that what is the reason behind for filling the different types of ITRs in different years.

As per the above table it is evident that you have been showing your income in different heads in different years. In view of the above, it is clear that the said amount of Rs.1,32,60,942/- is left as unexplained income in your hand. You are hereby requested to clarify the discrepancy with the supporting documents.

It is hard to believe by stretches of imagination that you have received only one export order during the year under consideration.

Please note that non-compliance to this notice may lead to initiation of penalty u/s.272A(1)(d) of the I. T. Act, 1961.

2.2. The AO noted that the assessee did not reply to the said notice and made the addition of Rs. 1,32,66,942/- u/s 69A of the Act. The relevant extract of the said order is replaced as under:

“ The assessee choose not to reply the above mention notice dated 02.03.2023 which clearly indicate that the assessee has nothing to say in this matter.

3.1.1. During the course of assessm