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Facts
The assessee preferred an appeal against an ex-parte order passed by the CIT(A)/NFAC, which arose from an assessment order under Section 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961, for Assessment Year 2018-19. The primary ground was that the AO erred in completing the assessment and the CIT(A) erred in sustaining the addition made by the AO.
Held
The Tribunal held that the CIT(A) passed an ex-parte order without dealing with the matter on merits as required by Section 250(6) of the Act. The Tribunal decided to remit the matter back to the CIT(A) for fresh consideration after granting the assessee an opportunity of being heard.
Key Issues
Whether the CIT(A) erred in passing an ex-parte order without considering the merits of the case and providing adequate opportunity to the assessee? Whether the appeal should be remitted back for fresh adjudication?
Sections Cited
143(3), 143(3A), 143(3B), 13(2), 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI
Before: Ms. MADHUMITA ROY & SHRI BRAJESH KUMAR SINGH
O R D E R
PER Ms. MADHUMITA ROY, JM:
The instant appeal, preferred by the assessee, is directed against the order dated 31.01.2025 passed by the CIT(A)/NFAC, Delhi, arising out of the order dated 04.03.2021 passed by the National e-Assessment Centre, Delhi, under Section 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2018-19.
The assessee has raised following grounds of appeal:
“1. On the facts and circumstances of the case Ld. AO has erred both on facts and in law in completing the assessment at Income of Rs. 85,00,000/-.
Pramila Katiyar Charitable and Educational Welfare Trust 2. On the facts and circumstances of the case, the CIT(A) erred in passing the ex-parte order without proving ample opportunity to represent the matter and sustain the claim.
On the facts and circumstances of the case, the CIT(A) erred in sustaining the addition made by the Ld. AO of Rs. 85,00,000/- u/s 13(2) of the Act by treating the application of income of appellant trust instead of business advances.
On the facts and circumstances of the case, the Ld.AO erred in making the addition without considering the submission of the Appellant during the course of assessment proceedings.
The appellant craves leave to add, amend or alter any of the grounds of appeal.”
4. Ld. Counsel for the assessee at the outset submitted that the Learned First Appellate Authority has not dealt with the matter in terms with the provisions of Section 250(6) of the Act and has dismissed the assessee’s appeal, ex parte, without considering the merits on the issue raised before him. He prayed that the matter may be restored to the file of the Ld. CIT(A) for decision afresh on merits after affording reasonable opportunity of being heard to the assessee.
5. Ld. DR relied upon the order of ld. CIT(A).
6. We have heard the rival submissions and perused the materials available on record. It is revealed from the order of the Ld. CIT(A) that there was no representation on behalf of the assessee before him inspite of notices being sent, therefore, having no other alternative, the Ld. CIT(A) proceeded with the appeal and finalized the same ex parte. However, it appears that the Ld. CIT(A) has not dealt with the matter on merits in terms of provisions of Section 250(6) of the Act by passing a reasoned order on merits on the issue raised before him and hence in Pramila Katiyar Charitable and Educational Welfare Trust our considered opinion the matter requires to be remitted back to the file of Ld. CIT(A) for consideration of the issues afresh by granting an opportunity of being heard to the assessee and upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We also make it clear that in the event the assessee does not cooperate with the Ld. CIT(A), the said authority would be at liberty to proceed with the matter and finalize the same strictly in accordance with law. We order accordingly.
In the result, assessee’s appeal is allowed for statistical purposes.
Order pronounced in open court on 17.10.2025.