LAXMI AGRICULTURE CO OPERATIVE SOCIETY,SAMTA NAGAR, BIKANER vs. COMMISSIONER OF INCOME TAX (APPEALS), DELHI

Facts

The assessee filed appeals against an ex-parte order passed by the National Faceless Appeal Central (NFAC/CIT(A)) dated 24.06.2024 for A.Y. 2017-18. The CIT(A) rejected the appeal stating the assessee was not interested as there was no response to hearing notices, without mentioning the date of service of such notices. The assessee contended this was a violation of principles of natural justice.

Held

The Tribunal held that the CIT(A) failed to provide adequate opportunity of being heard to the assessee by not ensuring proper service of notice under Section 250 of the Act. Citing a Supreme Court judgment, the Tribunal emphasized the importance of opportunity of being heard. Therefore, the Tribunal set aside the impugned ex-parte order and remanded the matter back to the CIT(A)/NFAC for fresh adjudication on merits, ensuring proper opportunity is given to the assessee.

Key Issues

Whether the ex-parte order passed by the CIT(A) without ensuring proper service of hearing notices and adequate opportunity to the assessee violated principles of natural justice.