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Facts
The assessee's assessment for AY 2017-18 was completed ex-parte under Section 144, leading to additions. The CIT(A) dismissed the assessee's appeal, also ex-parte, without deciding on the grounds of appeal.
Held
The Tribunal found both lower authorities' orders to be ex-parte and noted that the CIT(A) failed to decide the appeal on merits. Therefore, in the interest of justice, the issue was restored to the Assessing Officer for a de-novo assessment, with directions for both parties to participate.
Key Issues
The key legal issues were the validity of ex-parte assessment and appellate orders, and the violation of natural justice principles due to the lack of opportunity for the assessee to be heard.
Sections Cited
Section 144
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Income Tax Appellate Tribunal, DEHRADUN BENCH, ‘SMC’DEHRADUN
Before: YOGESH KUMAR U.S. & SHRISANJAY AWASTHI
ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld.
Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 15/09/2025 for the Assessment Year 2017-18.
An assessment order came to be passed on 05/11/2019 u/s 144 of the Income Tax Act, 1961 ('Act' for short) by making certain additions.
The Assessee preferred an Appeal before the Ld. CIT(A) which has been dismissed on 15/09/2025 vide order impugned. As against the order of the Ld. CIT(A) dated 15/09/2025, Assessee preferred the present Appeal.
The Ld. Counsel for the Assessee submitted that both the order of the A.O. as well as Ld. CIT(A) are ex-parte and the Ld. CIT(A) has not decided on the grounds of the Appeal of the Assessee and the order impugned came to be passed in violation of principals of natural justice.
Thus, sought for allowing the Appeal.
Per contra, the Ld. Department's Representative submitted that the Assessee is a chronic defaulter who has not appeared before the Lower Authorities, therefore, both the A.O. as well as the Ld. CIT(A) have passed the respective orders in accordance with law which requires no interference, thus by relying on the orders of the Lower Authorities sought for dismissal of the Appeal.
We have heard both the parties and perused the material available on record. Both the order of the A.O. as well as order of the Ld. CIT(A) are ex-parte, wherein the Assessee has not participated in any of the proceedings. Even the Ld. CIT(A) has not decided all the grounds of Appeal on its merits. In view of the above, in the interest of justice, we deem it fit to restore the issue to the file of the A.O. for de-novo assessment. Needless to say, the A.O. shall provide opportunity of being heard to the Assessee before passing the assessment orderin accordance with law. The Assessee is also directed to participate in assessment proceedings without fail.
6. In the result, the Appeal of the Appellant is partly allowed for statistical purpose.