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Facts
The assessee filed an appeal against the order of the Addl. CIT(A) for AY 2018-19. The assessee's main ground was that the Addl. CIT(A) passed an ex-parte order without providing an opportunity of being heard.
Held
The Tribunal found that the order passed by the Addl. CIT(A) was ex-parte. Considering the principles of natural justice, the assessee should be given an opportunity to be heard.
Key Issues
Whether the Addl. CIT(A) erred in passing an ex-parte order without affording the assessee an opportunity to be heard.
Sections Cited
194C, 194J, 201(1A)
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Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH
Before: SHRI LALIET KUMAR & SHRI KRINWANT SAHAY
Order Per Krinwant Sahay, AM : Appeal in this case has been filed by the assessee against the order dated 06.02.2025 passed by the Ld. Addl. / Joint Commissioner of Income Tax (Appeals)-9, Mumbai for A.Y. 2018-19.
Grounds of appeal are as under:
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That in the facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals), is not justified in passing an ex-parte order and thereby dismissing the appeal of the assessee/ appellant and upholding the order of the Ld. Assessing Officer.
2. That in the facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals), is not justified holding the assessee/ appellant in default to for non- deduction of tax at source within the meaning of section 194C and 194J of the Income Tax Act, 1961 3. That in the facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals), is not justified in confirming the impugned demand of Rs.1,37,726/- by upholding the order of the Ld. Assessing Officer. 4. That in the facts and circumstance of the case the Ld. CIT(A) is not justified in upholding charging of Interest under section 201(1A) of the Income Tax Act, 1961
At the very outset, the ld. Counsel for the Assessee submitted that the ld. Addl. CIT(A) passed the impugned order ex-parte without giving opportunity to the Assessee of being heard.
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On the other hand, the ld. Addl. CIT(A) noted in his order dated 6.2.2025, several opportunities were given to the Assessee but the Assessee did not comply with any of the notices issued and accordingly did not file any submissions on this issue. The Ld. Counsel requested the Bench that since the Assessee was not heard by the Ld. Addl. CIT(A), therefore, the matter may be remanded back to the authorities below.
Per contra, ld. DR relied on the orders of the authorities below.
We have considered the findings given by the Assessing Officer in the assessment order and the Addl. CIT(A) in the appellate order. We find that since it is an ex-parte order, therefore, in the fitness of the things and keeping in view the element of natural justice, the Assessee should be given an opportunity of being heard. Accordingly, we are inclined to remand this case back to the file of the Assessing Officer for fresh adjudication.
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Accordingly, the case is remanded back to the file of the Assessing Officer for adjudication afresh on merit, by considering the submissions and documents produced by the Assessee and the relevant material available on record. Needless to say, that the AO shall afford due, reasonable and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the AO. All pleas available under the law shall remain so available to the assessee. Ordered accordingly.
In the result, Assessee’s appeal is allowed for Statistical Purposes.
Order pronounced on 27.10.2025.