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Facts
The assessee filed an appeal against an ex-parte order passed by the CIT(A) for AY 2012-13. The assessment order was also ex-parte, and the assessee claimed they were not aware of hearing notices. The CIT(A) confirmed additions without adjudicating on merits.
Held
The Tribunal noted that the assessee was not given sufficient opportunity to be heard by the AO and CIT(A), violating the principles of natural justice. The CIT(A) passed an ex-parte and non-speaking order.
Key Issues
Whether the assessee was denied natural justice and sufficient opportunity to be heard by the lower authorities. Whether the ex-parte orders passed by the AO and CIT(A) were justified.
Sections Cited
250, 144
AI-generated summary — verify with the full judgment below
Order Per,Dr. Arjun Lal Saini, AM Dr. Arjun Lal Saini, AM Captioned appeal filed by Captioned appeal filed by the assessee, pertaining to Assessment Year pertaining to Assessment Year 2012-13, is directed against the order passed under section 250 of the , is directed against the order passed under section 250 of the , is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by Learned Income Tax Act, 1961 (hereinafter referred to as “the Act”) by Income Tax Act, 1961 (hereinafter referred to as “the Act”) by Commissioner of Income Tax (Appeal)[hereinafter referred to as “CIT(A)”], Commissioner of Income Tax (Appeal)[hereinafter referred to as “CIT(A)”] Commissioner of Income Tax (Appeal)[hereinafter referred to as “CIT(A)”] dated 19.05.2025, which in turn arises out of which in turn arises out of an assessment order passed by order passed by Assessing Officer u/s 144 144 of the Act, on 09.11.2019.
2. Grounds of appeal raised by the assessee are as Grounds of appeal raised by the assessee are as follows: 1. “ The impugned Ex-parte Appellate Order u/s. 250 of the Act dated 19th May, parte Appellate Order u/s. 250 of the Act dated 19th May, parte Appellate Order u/s. 250 of the Act dated 19th May, 2025 passed by the Ld. Additional /JCIT (A) 2025 passed by the Ld. Additional /JCIT (A)-7, Kolkata is opposed to law, facts 7, Kolkata is opposed to law, facts and circumstances of the case and circumstances of the case Bharatkumar B. Bhuva
On the facts and circumstances of the case, the assessment On the facts and circumstances of the case, the assessment order is null and void order is null and void as the same is in violation of CBDT Circular No. 19/2019 requiring mandatory as the same is in violation of CBDT Circular No. 19/2019 requiring mandatory as the same is in violation of CBDT Circular No. 19/2019 requiring mandatory DIN.
The Ld. CIT(A) has erred in confirming the addition on account of LTCG of Rs. The Ld. CIT(A) has erred in confirming the addition on account of LTCG of Rs. The Ld. CIT(A) has erred in confirming the addition on account of LTCG of Rs. 4,36,735/- by passing Ex by passing Ex-parte Appellate Order without adjudicating the parte Appellate Order without adjudicating the grounds of appeal
on merits of the case. of appeal on merits of the case.
1. 4. The Ld. CIT(A) has erred in confirming the addition of Rs. 4,36,735/ The Ld. CIT(A) has erred in confirming the addition of Rs. 4,36,735/- on the The Ld. CIT(A) has erred in confirming the addition of Rs. 4,36,735/ ground of non-compliance of Hearing Notices issued without appreciating the compliance of Hearing Notices issued without appreciating the compliance of Hearing Notices issued without appreciating the fact the Appellant was not aware of such Notices. fact the Appellant was not aware of such Notices.
5. The Ld. Additional /JCIT (A) ditional /JCIT (A)-7, Kolkata has grossly erred in law and in facts in 7, Kolkata has grossly erred in law and in facts in confirming the action of the Ld. A.O. in the addition of an amount of Rs. confirming the action of the Ld. A.O. in the addition of an amount of Rs. confirming the action of the Ld. A.O. in the addition of an amount of Rs. 4,36,735/-being the FMV of Property as long term capital gain without being being the FMV of Property as long term capital gain without being being the FMV of Property as long term capital gain without being referring the matter to the Ld. DVO referring the matter to the Ld. DVO for the purpose of valuation.
6. That the order passed by the Ld. CIT u/s.250 of the I.T. Act, 1961 was arbitrary, That the order passed by the Ld. CIT u/s.250 of the I.T. Act, 1961 was arbitrary, That the order passed by the Ld. CIT u/s.250 of the I.T. Act, 1961 was arbitrary, bad in law and unjust. bad in law and unjust.
7. That the assessee craves leave to urge such other ground or grounds before or at That the assessee craves leave to urge such other ground or grounds before or at That the assessee craves leave to urge such other ground or grounds before or at the time of hearing of appeal.” time of hearing of appeal.”
3. At the outset, the Ld. Counsel for the assessee submitted that order passed Ld. Counsel for the assessee submitted that order passed Ld. Counsel for the assessee submitted that order passed by the assessing officer is an ex-parte order, as none appeared before the as none appeared before the assessing officer. On appeal . On appeal, by the assessee, the Ld. CIT(A) has also , by the assessee, the Ld. CIT(A) has also passed the order ex-parte order, as none appeared before the Ld. CIT(A). before the Ld. CIT(A).The Ld. Counsel submitted that now the assessee is ready to submit details Counsel submitted that now the assessee is ready to submit details and Counsel submitted that now the assessee is ready to submit details documents before the assessing officer assessing officer and wants to submit some some additional evidence also,therefore, the herefore, the matter may be remitted back to the file of the assessing officer for fresh adjudication. for fresh adjudication.
On the other hand, Ld. DR for the Revenue Ld. DR for the Revenue did not have any objection have any objection, if the matter is to be remitted back to the file of the be remitted back to the file of the assessing officer. .
I have heard both the parties. have heard both the parties. I note that in the assessee’s case under note that in the assessee’s case under consideration, the assessment was carried out u/s 14 consideration, the assessment was carried out u/s 144 of the Act and the of the Act and the impugned order passed by the ld. CIT(A), is an impugned order passed by the ld. CIT(A), is an ex-parte order and non order and non- speaking order, therefore, speaking order, therefore, I do not wish to make any comments on the meri do not wish to make any comments on the merits Page | 2 Bharatkumar B. Bhuva of the grounds raised by the assessee. of the grounds raised by the assessee. Considering the above facts, Considering the above facts, I note that assessee has not given sufficient opportunity of being heard and could that assessee has not given sufficient opportunity of being heard and could that assessee has not given sufficient opportunity of being heard and could not plead his case successfully before the ld. CIT(A) and assessing officer. I not plead his case successfully before the ld. CIT(A) and assessing officer. not plead his case successfully before the ld. CIT(A) and assessing officer. note that the ld. CIT(A) did not discuss the assessee’s case on merits based ) did not discuss the assessee’s case on merits based ) did not discuss the assessee’s case on merits based on the material available before him hence it is a violation of principle of on the material available before him hence it is a violation of principle of on the material available before him hence it is a violation of principle of natural justice. Now, the assessee wants to submit details and documents Now, the assessee wants to submit details and documents Now, the assessee wants to submit details and documents before the assessing officer. before the assessing officer. I note that it is settled law that principles of t is settled law that principles of natural justice and fair play require that the affected party is granted natural justice and fair play require that the affected party is granted natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest his case. Therefore, without sufficient opportunity of being heard to contest his case. Therefore, without sufficient opportunity of being heard to contest his case. Therefore, without delving much deeper into the case, in the interest of justice, delving much deeper into the case, in the interest of justice, I restore the matter back to the file of assessing officer, for de novo adjudication and pass matter back to the file of assessing officer, for de novo adjudication and pass matter back to the file of assessing officer, for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the a speaking order after affording sufficient opportunity of being heard to the a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. assessee, who in turn, is also directed to contest his stand forthwith. assessee, who in turn, is also directed to contest his stand forthwith. Therefore, I deem it fit and proper to set aside the order of the ld. CIT(A) it fit and proper to set aside the order of the ld. CIT(A) it fit and proper to set aside the order of the ld. CIT(A) and remit the matter back to the file of the and remit the matter back to the file of the Assessing Officer to adjudicate fficer to adjudicate the issue afresh on merits. the issue afresh on merits. It is needless to say that the assessee will be at It is needless to say that the assessee will be at liberty to adduce any evidences as deemed liberty to adduce any evidences as deemed relevant before the assessing relevant before the assessing officer at the time of assessment, proceedings in consequence to this order officer at the time of assessment, proceedings in consequence to this order officer at the time of assessment, proceedings in consequence to this order and the Assessing Officer shall, allow the assessee adequate opportunity of and the Assessing Officer shall, allow the assessee adequate opportunity of and the Assessing Officer shall, allow the assessee adequate opportunity of being, heard and to make relevant submissions, and then pass a speaking being, heard and to make relevant submissions, and then pass a speaking being, heard and to make relevant submissions, and then pass a speaking order which is fair and judicious. rder which is fair and judicious.For statistical purposes, the appeal of the For statistical purposes, the appeal of the assessee is treated as allowed. assessee is treated as allowed.