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Facts
The assessee challenged an assessment order for A.Y. 2018-19 passed under Section 147 read with Section 144, which was subsequently dismissed by the Ld. CIT(A). Both the assessment order and the CIT(A)'s order were passed ex-parte, with the assessee alleging violation of natural justice.
Held
The Tribunal noted that both the A.O. and Ld. CIT(A) passed ex-parte orders without the assessee's participation and the CIT(A) did not decide the appeal on merits. In the interest of justice, the issue was restored to the file of the A.O. for de-novo assessment, with directions for the A.O. to provide an opportunity of hearing and for the assessee to participate.
Key Issues
Whether ex-parte assessment and appeal orders, passed without the assessee's participation and without deciding on merits, warrant restoration for de-novo assessment with an opportunity for hearing.
Sections Cited
147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI
1. 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 19/03/2025 for the Assessment Year 2018-19.
An assessment order came to be passed on 26/03/2023 u/s 147 r.w. Section 144of 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 19/03/2025 vide order impugned. As against the order of the Ld. CIT(A) dated 19/03/2025, the 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 order in 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.