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Facts
The assessee's appeal for AY 2017-18 challenged an ex-parte order by the CIT(A) which affirmed the AO's disallowance/addition. The CIT(A) had proceeded ex-parte against the assessee due to non-appearance and lack of explanation or evidence.
Held
The Tribunal restored the appeal to the CIT(A) for fresh adjudication, noting the possibility of communication gaps. The assessee was granted three opportunities to present their case, bearing the risk and responsibility.
Key Issues
The key legal issue was whether the ex-parte order by the CIT(A) was justified given the possibility of communication gaps, and if the assessee should be granted another opportunity to present their case.
Sections Cited
Section 143(3)
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Income Tax Appellate Tribunal, DEHRADUN “SMC” BENCH, DEHRADUN
Before: SHRI SATBEER SINGH GODARA & MANISH AGARWAL
This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/Addl/JCIT(A)- 1, Surat’s DIN and order No. ITBA/APL/S/250/2025- 26/1078040670(1), dated 30.06.2025, involving proceedings under sections 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex-parte.
It emerges at the outset during the course of hearing that the learned CIT(A)/NFAC in its order has proceeded ex-parte against the assessee thereby affirming the Assessing Officer’s action making the corresponding disallowance/addition herein.
The Revenue argues during the course of hearing in support of CIT(A)/NFAC’s finding that the assessee had not filed any explanation or evidence supporting it’s case.
We have given our thoughtful consideration to the foregoing rival stands and is of the considered view that since the CIT(A) has proceeded ex-parte against the assessee, possibility of some communication gaps between the taxpayer, auditor and the arguing counsel could not be altogether ruled out.
Faced with this situation, in the larger interest of justice, we deem it appropriate to restore the assessee’s instant appeal back to the CIT(A)/NFAC for it’s afresh appropriate adjudication, within three effective
2 | P a g e opportunities subject to a rider that the taxpayer shall plead and prove the case at his own risk and responsibility, in consequential proceedings. Ordered accordingly.