TILAK CHAND AGRAWAL,TITILAGARH vs. THE INCOME TAX OFFICER, WARD-1, BOLANGIR, BOLANGIR

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ITA 148/CTK/2026Status: DisposedITAT Cuttack20 April 2026AY 2020-213 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while the assessee was negligent, principles of natural justice require a reasonable opportunity to present their case. Therefore, the CIT(A)'s order was set aside, and the matter was restored to the Assessing Officer for de novo adjudication.

What were the facts?

The assessee's case was reopened, and an ex-parte assessment order was passed due to non-response to notices. The CIT(A) also passed an ex-parte order sustaining the addition. The assessee claimed that both orders were ex-parte due to unavoidable circumstances and sought another opportunity.

What were the issues?

Whether the assessee was denied a reasonable opportunity to present their case due to ex-parte orders passed by the lower authorities.

Which sections of the Income-tax Act were involved?

Section 139(1),Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, – CUTTACK BENCH

Before: Shri Laxmi Prasad Sahu & Shri Sonjoy Sarma

IN THE INCOME TAX APPELLATE TRIBUNAL – CUTTACK BENCH VIRTUAL BENCH AT KOLKATA Before Shri Laxmi Prasad Sahu, Accountant Member and Shri Sonjoy Sarma, Judicial Member ITA No.148/CTK/2026 Assessment Year: 2020-21 Tilak Chand Agrawal……………………………………………….………...Appellant C/o M/s Tilak Chand Agrawal Saintala, Titilagarh, Bolangir Odisha-767032 [PAN: ABJPA2058G] vs. ITO, Ward-1, Bolangir……………………..……...…..…..Respondent Odisha-767001 Appearances by: Shri P.K. Mishra, AR appeared on behalf of the Appellant. Shri Umakanta Dhrupati, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : April 13, 2026 Date of pronouncing the order : April 20, 2026 ORDER Per Sonjoy Sarma, Judicial Member: This is an appeal filed by the assessee against the order of the NFAC, Delhi [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2016-17/10470353 dated 20.01.2026 for the assessment year 2020-21. 2. Brief facts of the case are that, assessee is an individual deriving its income from other sources and filed its return of income u/s 139(1) of the Act declaring total income of Rs.8,49,880/- and paid self-assessment tax of Rs.99,527/-. Subsequently, the case of the assessee reopened u/s 147 of the Act, and notice u/s 148 of the Act was issued on the ground that interest income amounting to Rs.17,16,883/- had escaped assessment under the head of income from other sources. The assessee however could not respond to the notices issued during the reassessment proceedings. Consequently, the Assessing Officer

ITA No.148/CTK/2026 Tilak Chand Agrawal completed the assessment ex-parte and made addition of Rs.17,28,133/- to the return of income raising a demand of Rs.10,16,047/-.

3.

Aggrieved by the above order, assessee preferred an appeal before the Ld. CIT(A) who also passed the order ex-parte due to non-appearance of the assessee and sustained the addition made by the Assessing Officer.

4.

Still aggrieved by the order, assessee is in appeal before this Tribunal. At the time of hearing, the Ld. AR submitted that both the assessment orders and the appellate order were passed ex-parte due to unavoidable circumstances and adequate opportunity was not effectively availed by the assessee. It was prayed that one more opportunity be granted to the assessee in the interest of justice.

5.

On the other hand, the Ld. DR supported the orders of the lower authorities below and submitted that sufficient opportunity had already been provided to the assessee, therefore at this stage appeal may be dismissed.

6.

We have heard the rival submission and perused the material available on record, it is undisputed fact that assessment order was passed ex-parte due to non-compliance by the assessee. The Ld. CIT(A) had also adjudicated the matter ex-parte for similar reasons. Thus, the issue has not been examined on the merit at either stage. In our considered view, although the assessee had negligent in not responding to the statutory notices, principles of natural justice require that reasonable opportunity to be afforded to the assessee to present his case. In the interest of justice and fair play, we deem it appropriate to set aside the order of the Ld. CIT(A) and restore the matter to the file of Assessing Officer for de novo adjudication in accordance with law. The assessee is directed to cooperate and furnish necessary details as may be called for.

ITA No.148/CTK/2026 Tilak Chand Agrawal 7. In the result, the appeal of the assessee is allowed for statistical purposes.

Kolkata, the 20th April, 2026.

Sd/- Sd/- [Laxmi Prasad Sahu] [Sonjoy Sarma] Accountant Member Judicial Member Dated: 20.04.2026. DP, PS Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar, Kolkata Benches

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