MBS IMPEX INDIA,NAWANSHAHAR vs. INCOME TAX OFFICER, NAWANSHAHAR
Facts
The assessee appealed against an ex-parte assessment order issued by the Assessing Officer under sections 144 and 147 of the Income Tax Act, which was subsequently confirmed by the CIT(A)/NFAC. The assessee contended that the orders were passed in violation of principles of natural justice, as no proper opportunity to be heard was provided.
Held
The Tribunal observed that both the AO and CIT(A)/NFAC passed ex-parte orders without granting adequate opportunity to the assessee, thereby violating natural justice. Citing a Delhi High Court judgment, the Tribunal set aside the assessment order and remanded the matter back to the Assessing Officer for a de novo assessment, with directions to issue a show cause notice and provide the assessee a proper opportunity of being heard.
Key Issues
Whether assessment orders passed ex-parte by revenue authorities without providing adequate opportunity of hearing to the assessee violate principles of natural justice, warranting a remand for de novo assessment.
Sections Cited
144, 147, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.
Before: DR. M. L. MEENA & SH. UDAYAN DASGUPTA
Per: DR. M.L. Meena, AM.:
This appeal is preferred by the assessee against the order passed by ld.
Commissioner of Income Tax (Appeal), NFAC, Delhi, dated 19.11.2024 which has
emanated from the order of the NFAC, Delhi u/s 144 r.w.s. 147 of the Act dated
12.03.2022.
None attended for the assessee and the adjournment application filed by the
counsel for the appellant is rejected, found devoid of merits. After hearing the
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learned DR and perusal of records, we find that both the revenue authorities the
Assessing Officer (In short ‘the AO’) and the NFAC has passed the orders exparte
quasa the assessee in violation of principal of natural justice. In view of that matter,
we decided to adjudicate the appeal after hearing the learned DR and considering
the the material available on record
From the record, it is evident that the Ld. CIT(A)/NFAC has confirmed the ex-
parte assessment order passed u/s 147 r.w.s 144/144B of the act, by merely
observing that the Appellant has failed to produce any submission/evidence in
support of his grounds of appeal and in the absence of any evidence, whatsoever,
whether the documentary or otherwise I am constraint to agree with the approach
adopted by the AO in making the addition during the course of Assessment
proceedings. However he didn't mention the factum of service of notice on the
assesse.
Accordingly, he concluded that 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.
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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 observation in casual manner.
We therefore 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 the assesse and the AO shall issue a Show Cause Notice, and thereafter pass a
reasoned order in accordance with law.
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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.
In the result, the captioned appeal of the assessee is 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/DOC*
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
