Service of Notice through E-mail despite Opting ‘No’ is Improper: ITAT remands Matter

The Income Tax Appellate Tribunal (ITAT) in Surat ruled that serving a notice through email, despite the assessee opting out, is improper. The case involved Akshaykumar Lathiya, who had opted against receiving notices via email. The National Faceless Appeal Centre (NFAC) confirmed an addition of ?36 lakhs under Section 69A for cash deposits during demonetization, taxed at 77.25% under Section 115BBE. The assessee filed an appeal with a 159-day delay, unaware of the ex parte order due to no physical notice. The ITAT condoned the delay, emphasizing substantial justice over technicalities, and remanded the case to the Assessing Officer (AO) for a fresh assessment, ensuring the assessee a fair opportunity to present evidence.