LAXMI AGRICULTURE COOPERATIVE SOCIETY,BIKANER vs. INCOME TAX OFFICER, WARD-1(1), BIKANER

Facts

The assessee filed appeals against an ex-parte order passed by the National Faceless Appeal Central/CIT(A) for Assessment Year 2017-18. The CIT(A) rejected the appeal stating the appellant was not interested, without verifying proper service of notice for hearings issued under section 250 of the Act, which the assessee contended was a violation of natural justice.

Held

The Tribunal held that the CIT(A) erred by passing an ex-parte order without ensuring proper notice and adequate opportunity to the assessee to present their case. Citing principles of natural justice and Supreme Court precedent, the Tribunal set aside the impugned order and remanded the matter back to the CIT(A)/NFAC for fresh adjudication on merits after granting the assessee a proper hearing. A duplicate appeal (ITA No. 697) was dismissed as infructuous.

Key Issues

Whether the CIT(A) violated principles of natural justice by passing an ex-parte order without ensuring proper service of notice and adequate opportunity to the assessee, and if so, whether the matter should be remanded for fresh adjudication on merits.