“ex-parte assessment”
The decision most relied on for ex-parte assessment is Vijay Shrinivasrao Kulkarni v. Income-tax Appellate Tribunal (171 Taxmann.com 696), cited in 200 judgments on BharatTax.
Leading authorities on ex-parte assessment
The ITAT fails to uphold natural justice when it doesn't address an infirmity regarding an assessee being denied a proper opportunity of being heard before the CIT(Appeals)/NFAC dismissed the matter ex-parte.
The opportunity of hearing provided to an assessee must be real, effective, and realistic, not merely notional, and tax authorities are incumbent to decide cases on their merits after affording due opportunity.
Service of notice through the ITBA portal is not a valid method of service under section 282(1) of the Income-tax Act, 1961, and Rule 127(1) of the Income-tax Rules, 1962. Consequently, matters where notice was deemed invalidly served via ITBA portal are remanded to the Assessing Officer for a de novo disposal to uphold principles of natural justice.
An ex-parte statement recorded under section 131 cannot be used against an assessee without giving them an opportunity to present rebuttal evidence, as doing so violates the principles of natural justice and vitiates the assessment order.
If an assessee is non-cooperative throughout the assessment and appellate proceedings, despite multiple opportunities, the authorities are justified in deciding the proceedings ex-parte based on the available material.
A High Court decision upholding additions made by the Assessing Officer for non-genuine purchases is affirmed when an SLP against it is dismissed by the Supreme Court. The Assessing Officer's addition for alleged bogus purchases is justified and can be sustained.
The Commissioner (Appeals) can pass an ex-parte assessment order under Section 251 read with Section 144 of the Income-tax Act, 1961, if the assessee fails to attend assessment proceedings or produce documents despite multiple notices and adjournments.
The Assessing Officer (AO) cannot rely solely on ex-parte details or data without cross-examination, especially when affidavits confirm no cash transactions.
