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Facts
The assessee filed an appeal against the order of the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act, 1961. The assessee contended that the PCIT's order was ex parte and requested the matter be restored to the PCIT for re-adjudication.
Held
The Tribunal restored the issues to the file of the PCIT for re-adjudication, granting the assessee an adequate opportunity of being heard. However, due to the assessee's non-cooperation, a cost of Rs. 25,000 was imposed on the assessee.
Key Issues
Whether the PCIT's order passed ex parte is liable to be set aside and whether cost should be imposed on the assessee for non-cooperation.
Sections Cited
263
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI MADHUSUDAN SAWDIA
Assessee represented by Shri Bijay Banerjee, A.R. Department represented by Shri Ashim Kumar Chakraborty, CIT-DR Date of hearing 19/02/2026 Date of pronouncement 19/02/2026 O R D E R PER: BENCH 1. This is an appeal filed by the assessee against the order of the ld. PCIT, Sambalpur under Section 263 of the Income Tax Act, 1961 (in short, the Act) in Revision No. PCIT, Sambalpur/revision-263/100000737506/2024 dated 02/12/2024 for the A.Y. 2017-18.
Shri Bijay Banerjee, ld. A.R. appeared on behalf of the assessee and Shri Ashim Kumar Chakraborty, ld. CIT-DR represented on behalf of the revenue.
It was submitted by the ld. AR that this is a case of an ex parte order. It was the prayer that the matter may be restored to the file of the ld. PCIT for readjudication.
In reply, ld CIT-DR vehemently supported the order of the ld. PCIT. It was the submission that if the issue is to be restored to the file of ld. PCIT, then a cost should be imposed.
Ravikant Sablaka Vs ITO 5. We have considered the rival submissions. We have perused the order of the ld. PCIT in para 10, it is noticed that three opportunities had been granted to the assessee, the assessee has not submitted his reply. However, in the interest of justice, we restore the issues in the appeal to the file of ld. PCIT for readjudication after providing the assessee adequate opportunity of being heard. However, looking to the non- cooperation of the assessee during the course of appellate proceedings even after issuance of notices to the assessee by the ld. PCIT, we impose a cost of Rs.25,000/-(Rupees Twenty Five Thousand only) on the assessee, as admitted by the ld. A.R. of the assessee, to be payable to the Income Tax Appellate Tribunal Bar Association, Sector-1, CDA, Cuttack-753014, within sixty days from the date of this order and receipt of the same would be produced before the ld. PCIT at the first hearing. Should the assessee not pay the above-mentioned costs within the prescribed period of sixty days from the date of this order, the order of the ld. PCIT shall stand confirmed.
In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 19/02/2026.