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Facts
The assessee filed an appeal against an ex-parte order passed by the CIT(A), which itself stemmed from an assessment made under Section 144 of the Income Tax Act. The assessee contended that they were denied sufficient opportunity to present their case before the CIT(A), thereby violating principles of natural justice.
Held
The Tribunal found that the assessee was not given a sufficient opportunity of being heard, which constituted a violation of natural justice. Consequently, the Tribunal set aside the order of the CIT(A) and remitted the matter back to the Assessing Officer for de novo adjudication, directing that the assessee be afforded a proper opportunity to present their case.
Key Issues
Whether the ex-parte order passed by the CIT(A) violated the principles of natural justice due to a lack of sufficient opportunity of being heard by the assessee.
Sections Cited
Section 144 of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, “SMC”
Before: DR. ARJUN LAL SAINI
सुनवाई क� तार�ख /Date of Hearing : 08/09/2025 घोषणा क� तार�ख /Date of Pronouncement : 12/09/2025 आदेश/Order Per Dr. Arjun Lal Saini, A.M
The present appeal has been filed by the Assessee, against the order passed by the Learned Commissioner of Income Tax (Appeal), Ahmedabad/ National Faceless Appeal, Centre (NFAC), Delhi dated [hereinafter referred to as “CIT(A)”]17.06.2025 arising in the matter of assessment order passed u/s.144 of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2017-18.
At the outset itself, the ld. Counsel for the assessee assailed the impugned order by contending that the assessee could not represent his case before Ld. CIT(A) and the order being an ex-parte order, stood vitiated on account of violation of principle of natural justice. The ld. Counsel for the assessee contended that in the interest of justice, another opportunity to contest the appeal before the assessing officer may be granted to the assessee.
The ld. DR for the Revenue debarred from objecting the stand of the ld. Counsel.
I have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld. CIT(A) and other materials brought on record. We note that in the assessee`s case under consideration, the assessment was carried out u/s 144 of the Act and the impugned order passed by the ld. CIT(A), is an ex- parte order and non-speaking order, therefore, I do not wish to make any comments on the merits of the grounds raised
by the assessee.
5. Considering the above facts, I note that assessee has not given sufficient opportunity of being heard and could not plead his case successfully before the ld. CIT(A). I note that the ld. CIT(A) did not discuss the assessee`s case on merits based on the material available before him hence it is a violation of principle of natural justice. I note that it is settled law that principles of natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest his case. Therefore, without delving much deeper into the merits of the case, in the interest of justice, I restore the 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 assessee, who in turn, is also directed to contest his stand forthwith. It is needless to say that the assessee will be at Page | 2 liberty to adduce any evidences as deemed relevant before the assessing officer at the time of assessment, proceedings in consequence to this order and the Assessing Officer shall, allow the assessee adequate opportunity of being, heard and to make relevant submissions, and then pass a speaking order which is fair and judicious. Therefore, I deem it fit and proper to set aside the order of the ld. CIT(A) and remit the matter back to the file of the Assessing Officer to adjudicate the issue afresh on merits.
For statistical purposes, the appeal of the assessee is treated as allowed.
Order pronounced in the open court on 12/09/2025.