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Facts
The assessee's income was estimated at Rs. 13,13,540 by applying an ad-hoc rate of 5% on MCX futures transactions totaling Rs. 2,62,70,745 in an ex-parte assessment under Section 147/144. The CIT(A) dismissed the assessee's appeal ex-parte without a speaking order.
Held
The ITAT set aside the CIT(A)'s order and restored the matter to the Assessing Officer for a de novo assessment. The AO was directed to pass a fresh assessment order after providing a reasonable opportunity to the assessee, as both the assessment and appellate orders were passed ex-parte.
Key Issues
The key legal issues were the validity of an ex-parte assessment without reasonable opportunity and the CIT(A)'s failure to pass a speaking order as required by Section 250(6).
Sections Cited
Section 147, Section 144, Section 250(6)
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Income Tax Appellate Tribunal, VARANASI CIRCUIT BENCH, VARANASI
Before: SHRI ANADEE NATH MISSHRA
has been filed by the assessee for assessment year 2011-12 against impugned appellate order dated 29/05/2023 (DIN & Order No. ITBA/NFAC/S/250/2023- 24/1053271544(1) of National Faceless Appeal Centre, (NFAC), Delhi.
In this case, exparte assessment order under Section 147/144 of the Income Tax Act, 1961 (in short the Act) was passed by the Assessing Officer, whereby the Assessing Officer estimated income of the assessee at Rs.13,13,540/- by applying adhoc estimated rate of 5% on assessee’s transactions totaling Rs.2,62,70,745/- on MCX (Multi Commodity Exchange) futures. The learned CIT(A) dismissed the assessee’s appeal ex-parte, in a summary manner, without passing a speaking order on merits of the case. This is in violation of statutory duty of learned CIT(A), as contained in Section 250(6) of the Act to pass speaking order for determination. Further, the assessment order was also passed ex-parte without providing reasonable opportunity to the assessee.
At the time of hearing, learned Departmental Representative (DR) for Revenue left the decisions to the discretion of the Bench. In view of the foregoing, the impugned order of the learned CIT(A) is set aside and the issue in dispute regarding addition made in the assessment order is restored back to the file of the AO with a direction to pass denovo assessment order on these issues in accordance with law, after providing reasonable opportunity to the assessee, and, in accordance with law.
In the result, the appeal of the assessee stands partly allowed for statistical purposes.
(Order pronounced in the open court on 05/01/2026)