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Facts
The assessee challenged an ex-parte order by the CIT(Appeals) which confirmed an addition made under Section 147 read with Section 144, primarily due to the assessee's non-compliance with summons under Section 131 and non-appearance before the CIT(Appeals). The assessee's counsel argued that adequate opportunities were not provided.
Held
The Tribunal, emphasizing the principle of natural justice, set aside the order of the CIT(Appeals). It remitted the matter back to the CIT(Appeals) to grant the assessee a final opportunity to be heard, while also cautioning the assessee to cooperate with the proceedings.
Key Issues
The key issue was whether the ex-parte order by the CIT(Appeals) and the underlying assessment under Section 147 read with Section 144, passed due to non-compliance, violated the principles of natural justice by denying the assessee a proper hearing.
Sections Cited
147, 144, 131
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ)
Assessment Year: 2013-2014 Prabha Commercial Pvt. Limited,…...……..…Appellant C/o. Baid & Company, Chartered Accountants, 10C, Ballygunge Circular Road, Kolkata-700019 [PAN:AAECP4719L] -Vs.- Income Tax Officer,…………………………..…..Respondent Ward-5(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Om Prakash Baid, Shri Dheerendra Baid, FCA and Shri Ami Chand Baid, C.A., appeared on behalf of the assessee Shri Mrinmoy Basak, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: November 17, 2025 Date of pronouncing the order: November 20, 2025 O R D E R
The present appeal is directed at the instance of assessee against the order of Id. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 08.12.2024 passed for Assessment Year 2013-2014.
At the time of hearing, ld. Counsel for the assessee submitted that the ld. CIT(Appeals) has passed the order ex-parte without giving opportunities to the assessee. He also submitted that even the assessment order has been passed under section 147 r.w.s. 144 of the Act due to non-compliance of summons issued u/s, 131 of the Income Tax Act from the side of the assessee and returned unserved with postal remark ‘not known’. He prayed for one more opportunity to substantiate his case before the ld. CIT(Appeals).
At the time of hearing, ld. Sr. Departmental Representative supported the orders of lower authorities.
I have heard both the sides and perused the material available on record. A perusal of the impugned order clearly shows that as there was no response to the notices to substantiate the claim with documentary evidences and submissions, ld. CIT(Appeals) confirmed the addition made by the ld. Assessing Officer. It is also evident that the ld. CIT(Appeals) has not discussed the issue on merits and dismissed the appeal due to non-appearance. I also find that the assessment order has been passed u/s. 147 read with section 144 of the Act as the assessee 2 (A.Y. 2013-2014) Prabha Commercial Pvt. Limited remained non-compliant and failed to produce any evidence or supporting documents in support of the claim. Considering the facts and circumstances of the case, I am inclined to set aside the order passed by the ld. CIT(Appeals) and in order to meet the principle of natural justice, remit the matter back to the file of the ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the ld. CIT(Appeals) failing which the ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are partly allowed for statistical purposes.
In the result, appeal of the assessee stands partly allowed for statistical purposes.
Order pronounced in the open Court on 20/11/2025.