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Facts
An assessment order under Section 143(3) was passed, making certain additions. The assessee's subsequent appeal to the CIT(A) was dismissed ex-parte. The assessee then appealed to the ITAT, contending both lower orders were ex-parte and violated natural justice.
Held
The Tribunal found both the AO's and CIT(A)'s orders were ex-parte and the CIT(A) failed to decide all appeal grounds on merits. Consequently, the issue was restored to the AO for a de-novo assessment, ensuring an opportunity of being heard for the assessee.
Key Issues
Whether ex-parte orders passed by the AO and CIT(A) without deciding appeal grounds on merits violate principles of natural justice, warranting a de-novo assessment.
Sections Cited
Section 143(3)
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Income Tax Appellate Tribunal, DELHI
A.Y 2017-18) M/s Shiv Shakti Traders Vs Assistant Commissioner of DD-142A, Avantika, Ghaziabad Income Tax, Circle 2(2)(1), 201001, Uttar Pradesh Ghaziabad, Uttar Pradesh PAN: AAWFS7828J (RESPONDENT) (APPLICANT) Appellant by Sh. Lalit Mohan, CA Respondent by Sh. Jitender Singh, CIT DR Date of Hearing 13.04.2026 Date of Pronouncement 15.04.2026 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 11/10/2024 for the Assessment Year 2017-18.
Brief facts of the case are that, an assessment order came to be passed on 16/12/2019 passed u/s 143(3) 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 11/10/2024 vide order impugned. As against the order of the Ld. CIT(A) dated 11/10/2024, 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.