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Facts
The assessee filed their income tax return for AY 2014-15. The case was reopened under Section 147, and notices were issued. The assessee did not file a return in response but later submitted a reply to a show cause notice. The Assessing Officer added a significant amount as unexplained deposits. The CIT(Appeals) dismissed the appeal ex-parte.
Held
The Tribunal noted that the CIT(Appeals) passed an ex-parte order without substantial discussion on the merits, failing to provide points for determination and reasons. The Tribunal emphasized the principle that no litigant should be condemned unheard.
Key Issues
Whether the ex-parte order passed by the CIT(Appeals) without proper adjudication on merits violates principles of natural justice, and whether the assessee should be granted another opportunity to present their case.
Sections Cited
250, 147, 148, 142(1), 69A, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI M. BALAGANESH & SHRI SUNIL KUMAR SINGH
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
All these three appeals have been preferred by assessee against separate impugned orders all dated 28.02.2025 passed in first appeal No. NFAC/2013-14/10274599, NFAC/2014-15/10274612 and NFAC/2015-16/10274638 for the assessment years 2014-15, 2015-16 and 2016-17 respectively, by Ld. CIT(Appeals)/NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) wherein Ld. CIT(Appeals) has dismissed assessee’s first appeals ex parte.
The facts in all the three appeals are almost similar. Hence, for the sake of brevity and convenience, these appeals are being decided by the common order. The facts of for the assessment year 2014-15 are only being narrated as under :
The appellant assessee filed return of income for A.Y. 2014-15 on 31.03.2015, declaring total income of Rs.15,69,350/-. On the basis of information available with the department, it was noticed that the appellant assessee deposited cash to the tune of Rs.5,91,19,575/- in his bank account No. 0273010100002760 in J & K Bank. The case was reopened u/s. 147 and notice u/s. 148 of the Act was issued. Assessee did not file the return of income in response thereof. Assessee did not respond to the notice issued u/s. 142(1) of the Act. However, assessee submitted reply dated 08.05.2023 in response to the show cause notice dated 20.04.2023. Assessing Officer, not being satisfied with assessee’s response, added Rs.8,58,87,265/- as unexplained deposits/credits u/s. 69A of the Act.
Aggrieved assessee filed an appeal before ld. CIT(Appeals), who dismissed assessee’s first appeal ex parte.
Assessee has filed the second appeal on the various grounds, one of which is that he could not participate and defend his case in the appellate proceedings on account of unavoidable reasons, praying to 2 | P a g e afford one more opportunity to present his case before the revenue authorities on merit.
Perused the records. Heard Ld. representative for assessee and Ld. DR for revenue.
Learned representative for assessee has submitted that the impugned order has been passed ex parte, as the assessee could not participate in the first appellate proceedings due to unavoidable reasons, hence, be afforded an opportunity of hearing before the first appellate authority.
Learned DR has pointed out that as many as on seven occasions, assessee was afforded opportunities to defend his case during the first appellate proceedings, yet he chose to remain away from participating in the proceedings. Ld. DR has supported the impugned order.
It transpires from the perusal of the impugned order that the assessee did not file any submission in response to various notices issued by the first appellate authority on 19.06.2024, 28.06.2024, 22.07.2024, 06.08.2024, 19.09.2024 and 13.02.2025. Such an irresponsive and reluctant attitude of the assessee has compelled the first appellate authority to pass impugned order ex parte. It is, however, noticed that learned CIT(Appeals) passed ex-parte impugned order without any substantial discussion on the merits of the case, whereas 3 | P a g e learned CIT(Appeals) was expected to state the points for determination, decision thereon and the reasons for the decision as provided u/s. 250(6) of the Act, more particularly when the appellant assessee had raised 11 grounds in Form-35 before ld. CIT(Appeals).
It is well settled principle that the ‘reason’ is the life of law. It is that filament that injects soul to the order. Absence of analysis, not only evinces non-application of mind but also mummifies the core spirit of the order. Keeping the well settled principle that no litigant should be condemned unheard in view, we deem it just and appropriate to remit the matter back to the file of learned CIT(A) for adjudication afresh on merits after affording opportunity of hearing to the assessee. The ld. CIT(Appeals) is directed to pass speaking and reasoned order. We direct the assessee to be cooperative in attending the hearings and making submissions before the learned CIT(A) for the expeditious and effective disposal. Needless to say, that learned CIT(A) shall ensure the observance of the principles of natural justice. It is made clear that we have not made any observation in respect of the merits of the case. The appeal is, thus, liable to be allowed for statistical purposes.
Since, the issues involved in & 245/Agr/2025 for A.Y. 2015-16 and 2016-17 are identical to one involved in ITA No. 243/Agr/2025(A.Y. 2014-15, our finding in (A.Y. 4 | P a g e 2014-15) shall mutatis mutandis apply in these two appeals too.
Accordingly, both these appeals are also liable to be allowed for statistical purposes.
244 & 245/Agr/2025 are allowed for statistical purposes. The impugned orders all dated 28.02.2025 are set aside.
Order pronounced in the open court on 29.08.2025.