DHANKALASH DISTRIBUTORS PRIVATE LIMITED,KOLKATA vs. I.T.O., WARD 12(1), KOLKATA, KOLKATA

ITA 3264/KOL/2025Status: DisposedITAT Kolkata08 October 2026AY 2023-243 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that both the order of the Assessing Officer and the order of the NFAC were ex-parte, with the assessee not participating in the proceedings. Crucially, the Tribunal observed that the NFAC had not decided all the grounds of appeal on their merits. In the interest of justice, the Tribunal decided to restore the issue to the file of the Assessing Officer for a de-novo assessment. The Assessing Officer was directed to provide the assessee an opportunity of being heard before passing the assessment order in accordance with law. The assessee was also directed to participate in the assessment proceedings without fail. The ratio decidendi is that where orders are passed ex-parte without deciding all grounds of appeal on merits, principles of natural justice are violated, necessitating a fresh assessment with due opportunity to the assessee. The operative direction is to remand the matter to the Assessing Officer for de-novo assessment.

What were the facts?

The assessee, Dhankalash Distributors Private Limited, filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated 12.12.2025. This order was passed under Section 250 of the Income Tax Act, 1961, for the Assessment Year 2023-24. The NFAC had dismissed the assessee's appeal against an assessment order dated 20.03.2025, passed under Section 143(3) r.w.s. 144B of the Act, which had made certain additions to the assessee's income. The assessee contended that both the Assessing Officer's and the NFAC's orders were ex-parte and that the NFAC had failed to decide the grounds of appeal on merits, thus violating principles of natural justice.

What were the issues?

1. Whether the orders passed by the Assessing Officer and the NFAC were ex-parte and in violation of the principles of natural justice, thereby requiring a de-novo assessment? (Question of law and fact, turning on principles of natural justice and procedural fairness). Assessee's Contention: The assessee argued that both the Assessing Officer's and the NFAC's orders were ex-parte. It was further contended that the NFAC had not decided on the grounds of appeal filed by the assessee, and the impugned order was passed in violation of the principles of natural justice. Therefore, the appeal should be allowed. Revenue's Contention: The revenue argued that the assessee is a chronic defaulter who failed to appear before the lower authorities. Consequently, both the Assessing Officer and the NFAC passed their respective orders in accordance with the law. The revenue sought dismissal of the appeal, relying on the orders of the lower authorities.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH,

Before: SHRI YOGESH KUMAR U.S. & SHRI RAKESH MISHRA

For Appellant: Shri Mayank Patawari, AR
For Respondent: Shri Madanappa Raghuveer, CIT DR
Hearing: 07.10.2026Pronounced: 08.10.2026

PER YOGESH KUMAR U.S., JUDICIAL MEMBER:

The present Appeal is filed by the Assessee against the order of the NFAC, Delhi ‘Ld. CIT(A)’ for short) dated 12.12.2025, passed u/s 250 of the Income Tax Act, 1961 (“the Act”, for short) for the Assessment Year 2023-24. 2. Brief facts of the case are that, an Assessment Order came to be passed u/s 143(3) r.w.s. 144B of the Act on 20.03.2025 by making certain additions. Aggrieved by the Assessment Order dated 20.03.2025, Assessee preferred an Appeal before the Ld. CIT(A). The Dhankalash Distributors Private Limited; A.Y: 2023-24 Ld. CIT(A) vide Order dated 12.12.2025, dismissed the Appeal of the Assessee. As against the

The order continues below.

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