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Facts
The assessee filed an appeal against the order of the CIT(A) which dismissed the appeal ex-parte without adjudicating on merits. The AO had made additions to the income under Section 143(3) of the Income Tax Act, 1961.
Held
The Tribunal restored the appeal to the file of the CIT(A) for de novo adjudication, stating that the CIT(A) decided the issue ex-parte without giving an independent finding on merits. The assessee was directed to be given a reasonable opportunity of being heard.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte without providing adequate opportunity of being heard and without adjudicating on merits.
Sections Cited
143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “C”: NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI M. BALAGANESHShri Ravi Kumar,
AY 2017-18, arises out of the order of the ld Commissioner of Income Tax (Appeals)-30, New Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 02.01.2025 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 27.12.2019 by the Assessing Officer, ITO, Ward- 2(4), Central Circle-31, New Delhi (hereinafter referred to as ‘ld. AO’).
The assessee vide Ground No.11 had raised a specific ground challenging the action of the Learned CITA in violating the principles of natural justice by not providing adequate opportunity of being heard. This goes to the root of the matter and hence we deem it fit to first take up the same for adjudication.
We have heard the rival submissions and perused the materials available on record. The return of income was filed by the assessee declaring taxable income of Rs. 6,81,230. In the scrutiny assessment framed under section 143(3) of the Act, the Learned AO had made the following additions:-
a) Addition on account of gross profit – Rs 2,85,31,285 b) Addition on account of advances from customers - Rs 4,87,60,832 c) Addition on account of unexplained cash deposits in bank account – Rs 40,00,000 4. The assessee preferred an appeal before the Learned CITA. The Learned CITA provided sufficient opportunities to the assessee, but there was no compliance from the side of the assessee. Accordingly, the Learned CITA proceeded to dispose of the appeal without securing the presence of the assessee by simply reiterating the contents of the assessment order and dismissed the appeal of the assessee. The Learned AR before us prayed for one last opportunity to be given to the assessee before the Learned CITA so that effective representation could be made thereon. Per contra, the Learned DR vehemently objected for restoring the case to the file of Learned CITA as sufficient opportunities were indeed given by the Learned CITA to the assessee, which were not utilised by the assessee.
On perusal of the order of the Learned CITA and considering the totality of the facts and circumstances of the case, we find that the Learned CITA had decided the issue exparte without adjudicating the issue on merits by giving its independent finding. Hence, in the interest of justice and fair play, we deem it fit and appropriate to restore this appeal to the file of Learned CITA for de novo adjudication in accordance with law. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with Learned CITA for expeditious disposal of the appeal by not taking unwarranted adjournments. With these observations, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 11/03/2026.