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Facts
The assessee filed an appeal against the ex-parte order of the CIT(A) for AY 2019-20. The Assessing Officer and the CIT(A) passed ex-parte orders without adjudicating the issues on merit. The assessee claims inadequate opportunity of hearing was provided.
Held
The Tribunal found that both the AO and CIT(A) passed ex-parte orders without considering the merits of the case or providing adequate opportunity to the assessee. Therefore, the case was remanded back to the CIT(A) for fresh adjudication.
Key Issues
Whether the CIT(A) erred in passing an ex-parte order without providing adequate opportunity of hearing to the assessee and adjudicating the issues on merit.
Sections Cited
144, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH
Before: SHRI LALIET KUMAR & SHRI KRINWANT SAHAY
Per Krinwant Sahay, AM : Appeal in this case has been filed by the assessee against the order dated 29.09.2023 of ld. Commissioner of Income Tax (Appeals)-5, Ludhiana for A.Y. 2019-20.
763-Chd-2034 Jagmohan Garg, Ludhiana 2 2. Grounds of appeal are as under: -
That the impugned order is bad both on facts and law.
That the Ld. CIT(A) has erred in verifying the facts that whether the notices issued were duly served on the appellant before passing an ex- parte order u/s 250 [6].
That the Ld. CIT(A) has wrongly and illegally upheld the high-pitched addition of Rs.3,10,90,393/- made by the AO by applying net profit rate of 5% on total of purchases and sales after rejecting the books of accounts against the settled principle of law by passing an ex-party order. 4. That the Appellant craves permission to add, amend, elucidate any ground of appeal at the time of hearing.
3. None appeared on behalf of the Assessee. However, from the record, it is gathered that the order in this case was passed ex-parte u/s 144 of the Income Tax Act, 1961 (in short 'the Act') by the Assessing Officer and the Ld. CIT(A) has also passed an ex-parte order without adjudicating any issue on merit on the basis of material available on record. As such, in this case no adequate opportunity of hearing was provided to the Assessee and the matter need to be remanded back to the CIT(A) for adjudication it afresh.
763-Chd-2034 Jagmohan Garg, Ludhiana 3 4. The ld. DR did not object if the matter is remanded to the file of the CIT(A).
We have considered the assessment order passed by the Assessing Officer and we find that it is an ex-parte order passed by the Assessing Officer and similarly the Ld. CIT(A) has also passed the appellate order without giving any findings on merit on the basis of material available on record. Therefore, we are inclined to remand this case back to the CIT(A) to decide and pass an order afresh on merits, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). 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 09. 06.2025.