ABDUL REHMAN BHAT,SRINAGAR vs. ITO WARD 1 SRINAGAR, SRINAGAR
Facts
The assessees filed appeals against ex-parte assessment orders passed under Section 144 of the Income Tax Act, which were confirmed by the CIT(A)/NFAC. The CIT(A) upheld these orders without addressing the merits, based on the assessees' alleged non-compliance, leading to an issue of violation of natural justice. One appeal involved a delay of 192 days in filing.
Held
The tribunal condoned the filing delay and, emphasizing principles of natural justice, remanded both matters back to the Assessing Officer for de novo assessment. The AO is directed to provide adequate opportunity of being heard to the assessees and issue a show cause notice before passing a reasoned order. This decision was supported by the Delhi High Court judgment in "Bharat Aluminium Company Ltd. vs. Union of India" regarding the right to personal hearing.
Key Issues
Whether the ex-parte assessment orders passed under Section 144 by the AO and confirmed by the CIT(A)/NFAC violated the principles of natural justice, specifically regarding the right to a personal hearing.
Sections Cited
Section 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.
Before: DR. M. L. MEENA & SH. UDAYAN DASGUPTA
I.T.A. No. 216/Asr/2025 And ITA No. 218/Asr/2025 Page 2
Per: DR. M.L. Meena, AM.:
These Captioned appeals are filed by the assessees against the separate orders
dated 06/06/2024 and 26/02/2025 passed by the Ld. National Faceless Appeal Centre
(NFAC/ CIT (A), in respect of Assessment Year: 2017-18, challenging therein the
orders of the authorities below passed ex parte qua the assesse.
Since there was common issue involved in both these appeals related to
violation of natural justice and hence these two appeal were heard together after
hearing the Ld. DR, although none attended for these assesses. Further, we had
rejected the adjournment application filed by one of these assessees being found
devoid of merits in the case of appeal number in ITA No. 216/Asr/2025.
We condone the delay of 192 days in the case of in ITA No. 216/Asr/2025 as
the Ld. DR has no objection to the request of the assessee for the condonation of the
delay in filing the appeal in view of the genuine and bonafide reasons for the said
delay in filing the appeal before the tribunal. Accordingly, we condone the delay of
192 days and admit appeal on merits. The facts are discussed from ITA No.
216/Asr/2025 (Assessment Year 2017-18) as a lead case.
We find from the record that the Ld. CIT(A)/NFAC has confirmed the ex-
parte assessment order passed u/s 144 of the act, by merely observing that the
assessee remained non-compliant and non-cooperative and did not submit any reply
till the end of the process assessment proceedings. Accordingly, he concluded that
I.T.A. No. 216/Asr/2025 And ITA No. 218/Asr/2025 Page 3
he was constrained to uphold the order of the AO in absence of any supporting
evidence, document presented by the appellant. Thus, the Ld. CIT (A)/NFAC
without going into merits of the case, confirmed the addition made by the AO in an
ex parte assessment order passed u/s 144 of the act in violation of principles of
Natural Justice. In our view, the Ld. CIT(A)/NFAC ought to have appreciated the
facts of the case and granted opportunity to the assessee in view of principles of
natural justice before giving his blanket adverse casual observation.
Accordingly, we consider it deem fit that the matter may be remanded back to
the AO to pass de novo assessment after granting adequate opportunity of being
heard. In support, we place reliance on Judgement of Delhi High Court in the case
of “Bharat Aluminium Company Ltd. vs. Union of India”, [2022] 134 taxmann.com
187 (Delhi) where it was observed that Assessee would have a vested right to
personal hearing in faceless assessment proceeding under section 144 of the Act.
The Ld. DR has no objection in remanding the matter to the file of the AO for de
novo assessment in view of principles of natural justice.
Thus, in view of the principles of natural justice, we restore back the matter
to the file of the Ld. AO to pass de novo assessment after considering the written
submission and evidences filed on record and may be filed before him during the
fresh Assessment Proceedings after granting sufficient opportunity of being heard to
I.T.A. No. 216/Asr/2025 And ITA No. 218/Asr/2025 Page 4
the assesse and the AO shall issue a Show Cause Notice, and thereafter pass a
reasoned order in accordance with law.
Accordingly, Assessment order is set aside and matter is remanded back to
the file of the assessing officer to pass de novo assessment as per law.
The issue related to violation of principles of natural justice in 218/Asr/2025
is similar to the issue of Natural Justice adjudicated by us in ITA No. 216/Asr/2025.
Therefore, our observation and finding given in ITA No. 216/Asr/2025 shall apply
in ITA No. 218/Asr/2025 in mutatis mutandis, ordered accordingly.
In the result, both the captioned appeals of the assessees are allowed for
statistical purposes.
Order pronounced on 26.09.2025 in the open Court.
Sd/- Sd/- (UDAYAN DASGUPTA) (DR. M. L. MEENA) Judicial Member Accountant Member
AKV
Copy of the order forwarded to:
(1) The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order
