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Facts
The assessee filed appeals against ex-parte orders passed by the First Appellate Authority (FAA) for Assessment Years 2020-21 & 2021-22. The assessee contended they were unaware of the hearing notices, as they were allegedly not sent to their email, leading to their non-appearance and the ex-parte orders. The Revenue argued that adequate opportunities were provided to the assessee.
Held
The Tribunal acknowledged the ex-parte nature of the FAA's orders due to the assessee's non-compliance. Considering the assessee's submission about non-receipt of notices and in the interest of natural justice, the Tribunal remitted the matter back to the FAA. The FAA is directed to provide a fresh and reasonable opportunity of hearing to the assessee, who is also directed to cooperate.
Key Issues
Whether ex-parte orders passed by the First Appellate Authority without ensuring proper service of hearing notices to the assessee violate principles of natural justice and warrant re-adjudication.
Sections Cited
250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI PADMAVATHY S
आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: These appeals filed by the assessee are directed against the two different orders of Addl/JCIT(A), Patna both dated 20.03.2025, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2020-21 & 2021-22.
& 950/Chny/2025 :- 2 -: 2. At the very outset, we notice that the orders of First Appellate Authority (FAA) are ex-parte, since there was no compliance from the assessee to the four hearing notices issued from the office of the First Appellate Authority.
The Ld.AR submitted that the hearing notices issued from the office of the First Appellate Authority (FAA) were not sent to the assessee’s email id or there is no real time alert. Therefore, the assessee was unaware of the hearing notices and hence, the assessee could not appear during the appellate proceedings. It was prayed that in the interest of justice and equity, the issue may be restored to the files of the FAA for proper representation of its case.
The ld.DR submitted that adequate opportunities were provided from the office of the FAA and there is no violation of principles of natural justice. Therefore, it was prayed the appeals of the assessee may be dismissed.
We have heard rival submissions and perused the materials on record. The proceedings before FAA was ex-parte, since the assessee did not respond to various notices issued. The Ld.AR submitted that the assessee could not respond to the hearing notices since the hearing notices were not received by the assessee. In light & 950/Chny/2025 :- 3 -: of the submissions of Ld.AR and in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the FAA. Accordingly, the matter is remitted to the files of the FAA for fresh adjudication. The FAA shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced in the open court on 23rd July, 2025 at Chennai.