MAHENDRA RATHI,BIKANER vs. ITO, BIKANER

Facts

The assessee filed an appeal against an ex-parte order by the National Faceless Appeal Centre (NFAC) for AY 2010-11, citing non-receipt of hearing notices due to PAN-Aadhar non-linking. The appeal also challenged the validity of reassessment initiated under section 148 and the confirmation of short-term capital gains on agricultural land, arguing non-receipt of sale consideration and that the land was not a capital asset.

Held

The Tribunal noted that the NFAC rejected the appeal ex parte without specifying the service of notices under section 250. Recognizing the assessee's arguable case and principles of natural justice, the order was set aside. The matter is remanded to the CIT(A)/NFAC for fresh adjudication on merits, granting the assessee a full opportunity to present their case and evidence.

Key Issues

Whether the ex-parte appeal order passed by the NFAC was valid given the assessee's claim of non-receipt of notices, and the validity of reassessment proceedings under section 148 including the computation of capital gains on agricultural land.