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Facts
The assessee's appeal before the CIT(Appeals) was dismissed ex-parte due to failure to produce satisfactory documentary evidence and non-compliance with show-cause notices, leading to an assessment order under section 147/144. The assessee then appealed this ex-parte dismissal to the ITAT.
Held
The Tribunal observed that the CIT(Appeals) had not adjudicated the issue on merits and had dismissed the appeal due to non-appearance and non-compliance. To ensure the principle of natural justice, the Tribunal set aside the order of the CIT(Appeals) and remanded the matter back for a fresh hearing.
Key Issues
Whether the CIT(Appeals) was justified in dismissing the appeal ex-parte without adjudicating on merits, and whether the assessee deserves another opportunity to present its case.
Sections Cited
147, 144, 143(3)
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Income Tax Appellate Tribunal, KOLKATA-GUWAHATI ‘e-COURT’, DB, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ) & Shri Laxmi Prasad Sahu
Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals) dated 25th August, 2025 passed for Assessment Year 2022-23.
(A.Y. 2022-2023) Adarsha Samaj Kalyan Samittee 2. At the time of hearing, the ld. Counsel for the assessee submitted that the ld. CIT(Appeals) has passed the order ex-parte as the assessee failed to produce satisfactory documentary evidences in support of his claim inspite of sufficient opportunities given. He also submitted that even the assessment order has been passed under section 147/144 of the Income Tax Act due to non- compliance from the side of the assessee with regard to the show- cause notice. He prayed for one more opportunity to substantiate his case before the ld. CIT(Appeals).
At the time of hearing, ld. Departmental Representative supported the orders of lower authorities.
We have heard both the sides and perused the material available on record. A perusal of the impugned order clearly shows that as there was no response to the notices to substantiate the claim with documentary evidences and submissions, ld. CIT(Appeals) confirmed the addition made by the ld. Assessing Officer. It is also evident that the ld. CIT(Appeals) has not discussed the issue on merits and dismissed the appeal due to non-appearance. We also find that the assessment order has been passed u/s. 147/144 of the Act as the assessee remained non- compliant and failed to produce any evidence or supporting documents in support of the claim. Considering the facts and circumstances of the case, we are inclined to set aside the order passed by the ld. CIT(Appeals) and in order to meet the principle of natural justice, remit the matter back to the file of the ld. CIT(Appeals) with a direction to provide one more opportunity of (A.Y. 2022-2023) Adarsha Samaj Kalyan Samittee being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the ld. CIT(Appeals) failing which the ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are partly allowed for statistical purposes.
In the result, appeal of the assessee stands partly allowed for statistical purposes. Order pronounced in the open Court on 02/02/2026.