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Facts
The assessee filed an appeal against the Ld. CIT(A)'s order for AY 2017-18, which arose from an assessment under Section 143(3) by the ITO. The assessee contended that the CIT(A)'s order was ex parte and failed to decide the appeal on merits, specifically challenging additions related to bank credits, net profit percentage, and unexplained money from gift deeds.
Held
The Tribunal observed that the Ld. CIT(A) had issued multiple notices for hearing which the assessee failed to comply with. However, to uphold principles of natural justice, the Tribunal granted the assessee one more opportunity, restoring the appeal to the Ld. CIT(A) for fresh adjudication after providing an adequate opportunity of being heard. The assessee was directed to appear diligently.
Key Issues
Whether the Ld. CIT(A)'s ex parte order, passed without affording adequate opportunity of being heard to the assessee, should be set aside, and whether the matter should be remitted for fresh adjudication of the substantive additions.
Sections Cited
143(3)
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Income Tax Appellate Tribunal, “D” BENCH, KOLKATA
Before: Shri Rajesh Kumar, AM & Shri Pradip Kumar Choubey, JM]
ORDER
Per Shri Rajesh Kumar, AM
The appeal filed by the assessee is against the order of Ld. CIT(A), NFAC, Delhi dated 31.01.2024 for AY 2017-18 arising out of assessment order passed u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) by ITO, Ward-3(3), Bankura dated 05.12.2019.
The assessee has raised the following grounds of appeal:
The Ld. AR of the assessee submitted that the order passed by the ld. CIT(A) is an ex parte order and is a non-speaking order without providing adequate opportunity of being heard to the assessee. Hence, the ld. AR prayed before the Bench to set aside the order of the Ld. CIT(A) and restore the issue to the file of the Assessing Officer for adjudication afresh. Ld. Sr. DR opposed this prayer of the assessee.
After hearing the rival submissions and going through the order of the Ld. CIT(A), we find that the Ld. CIT(A) issued seven notices for hearing of the appeal but there was no compliance on the part of the assessee. Since the assessee could not present himself in the appellate proceedings, keeping this in mind and also treating this attitude against the principles of natural justice, we are of the view that the assessee should be granted one more opportunity. This being so, the issue in this appeal is restored to the file of the Ld. CIT(A) for adjudicating afresh after affording adequate opportunity of being heard to the assessee. The assessee is also directed to appear before the Ld. CIT(A) on the date of hearing diligently and without any fail.
In the result, appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 15th May, 2025