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Facts
The assessee, an individual, filed an income return, but the Assessing Officer made significant additions for Long Term Capital Gain (Rs. 20,84,30,351) and foreign expenditure (u/s Section 69C for Rs. 7,703). The CIT(A) subsequently dismissed the assessee's appeal ex-parte for non-compliance with notices.
Held
The ITAT, considering principles of natural justice, set aside the CIT(A)'s ex-parte order and remitted the matter back to the CIT(A) for fresh adjudication. This is subject to the assessee paying costs of Rs. 10,000/- to the Tamil Nadu State Legal Services Authority.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte without providing adequate opportunity of being heard to the assessee, particularly given the substantial additions made by the AO.
Sections Cited
143(3), 144B, 69C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2022-23 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 28.04.2025, in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) on 20.03.2024.
The assessee is an individual and filed her return of income declaring total income of Rs. 5,35,49,070/-. The A.O in the assessment order has made addition on Long Term Capital Gain (LTCG) of Rs. 20,84,30,351/- and addition u/s. 69C of the Act in respect of foreign expenditure of Rs. 7,703/-. Aggrieved by the same, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld. CIT(A) dismissed the appeal ex-parte as the assessee has not responded to three notices issued.
The Ld. Authorized Representative (A.R.) of the assessee submitted that the Ld. CIT(A) passed the order ex-parte without affording sufficient opportunity of being heard. It was further submitted that since huge additions have been made without hearing the assessee, in the interest of justice, one more opportunity may be granted to substantiate her case.
On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.
5. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the Ld. CIT(A) has dismissed the appeal ex-parte as the assessee has not complied with the three notices issued. Considering the submission of the assessee, and in the interests of natural justice, we are of the view that the assessee be provided with another opportunity of hearing to substantiate her case before the Ld. CIT(A) subject to payment of costs of Rs.10,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the Ld. CIT(A).
Accordingly, we set aside the order of the Ld. CIT(A) and remit the matter back to his file for fresh adjudication in accordance with law.
We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail and furnish complete details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 28th day of August, 2025 at Chennai.