HC Quashes Ex-Parte Order for Notice Sent to Wrong Auditor

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  • Last Updated on 11 July, 2025

Ex-Parte Order for GST Notice

Case Details: Suresh Kumar Paruchuri v.Commissioner of Income-tax (Appeals), NFAC, Delhi - [2025] 176 taxmann.com 113 (Karnataka)

Judiciary and Counsel Details

  • Pradeep Singh Yerur, J.
  • Sandeep Huilgol, Adv. for the Petitioner.
  • M. TirumaleshSmt. Roopa, Advs. for the Respondent.

Facts of the Case

The assessee individual earned certain income by rent and from capital gains during the subject assessment year. He purchased the land from a construction company, constructed a commercial and residential apartment complex on the land, and subsequently sold it to the present residents.

The assessee filed his return of income declaring the total income of Rs. 58.35 lakhs. He had declared that he had earned long-term capital gain (LTCG) of Rs. 2.81 lakhs on the sale of the property above. The assessee’s case was selected for scrutiny under CASS (Computer Assisted Scrutiny Selection). Assessing Officer (AO) passed an ex parte assessment order under section 143(3) read with section 144B, disallowing certain claims made by the assessee solely on the ground that the assessee had not furnished the requisite details.

During the assessment proceedings, communications and notices were issued to the email address of the assessee’s former Auditor, who was replaced by the present Auditor of the assessee. Assessee replaced his auditor and updated the email address of the current auditor in the appellate form. He had provided his specific email ID, namely ‘kctsilks@gmail.com,’ for all correspondence in respect of the appeal. The assessee mentioned the email address as ‘kctsilks@gmail.com’ in Form No. 35.

High Court Held

On writ, the Karnataka High Court held that once the email address is changed and it is within the knowledge of the department, the department ought to have issued notice or communication to the assessee to the present email address to facilitate him to contest the case and provide a fair opportunity of hearing and decide the matter in accordance with the law.

Admittedly, this was not done in the present case; therefore, the impugned order passed by the AO cannot be sustained, given that no proper notice and no proper opportunity for a fair hearing were provided to the assessee.

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Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied