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Facts
The assessee, Seema Pal, proprietor of M/s Ashish Khad Bhandar, received an ex-parte assessment order under Section 144 of the Income Tax Act, 1961, determining income at Rs.10,81,916/-. Her subsequent appeal to the CIT(A) was also dismissed ex-parte. This appeal challenges the ex-parte order of the CIT(A).
Held
The Tribunal observed that both the assessment order and the CIT(A)'s appellate order were passed ex-parte, denying the assessee a reasonable opportunity of being heard. Consequently, the Tribunal set aside the CIT(A)'s order and restored the matter to the Assessing Officer. The AO is directed to pass a de novo assessment order after providing the assessee a proper opportunity of being heard.
Key Issues
Whether the ex-parte assessment and first appellate orders, passed without providing a reasonable opportunity of being heard to the assessee, are valid, and if the matter should be remitted for a fresh assessment.
Sections Cited
144 of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ALLAHABAD BENCH “SMC”, ALLAHABAD
Before: SHRI ANADEE NATH MISSHRA & SHRI SUBHASH MALGURIA
2017-18 against impugned appellate order dated 17/06/2024 (DIN & Order No.ITBA/APL/S/250/2024- 25/1065685801(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].
(B) The facts of the case, in brief, are that the assessee is an individual and engaged in the business as proprietor of M/s Ashish Khad Bhandar. The assessment order in this case was passed by the Assessing Officer on 30/10/2019 u/s 144 of the Income Tax Act, 1961 (“the Act” for short) ex- parte qua the assessee, determining the total income of the assessee at Rs.10,81,916/-. Being aggrieved, the assessee filed appeal against the assessment order in the office of learned CIT(A). Vide order dated 17/06/2024, the assessee’s appeal was dismissed by the learned CIT(A) ex- parte. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 17/06/2024 passed by the learned CIT(A).
(C) We have heard the rival parties and have gone through the material placed on record. On perusal of records, it is seen that the assessment order as well as the impugned appellate order of the learned CIT(A), both were passed ex-parte qua the appellant assessee and the assessee’s submissions on merits could not be considered either by the Assessing Officer or by the learned CIT(A). Further, reasonable opportunity of being heard was not provided to the assessee. In view of the foregoing, the order of learned CIT(A) is set aside and the issues in dispute regarding additions made in assessment order are restored back to the file of the Assessing Officer with the direction to pass de novo assessment order in accordance with law after providing reasonable opportunity of being heard to the assessee.
(D) In the result, the appeal is allowed for statistical purposes.
(Order pronounced in the open court on 05/06/2025)