Padma Pharmaceuticals Vs ACIT (ITAT Bangalore)
Non-speaking Order Violates Section 250(6) – ITAT Bangalore Restores Case for Fresh Decision
Assessee challenged the NFAC order confirming additions without adequate reasoning. The appeal was delayed by 238 days, for which condonation was sought on the ground that the managing partner handling tax matters was unwell. Supporting affidavit & medical records were filed.
The Department argued that the firm had multiple partners who could have pursued the matter. However, the Tribunal held that illness of the managing partner constituted a reasonable cause, as substantiated by evidence, & accordingly condoned the delay.
On merits, the Tribunal noted that in Form 35 the Assessee had opted out of e-mail communication, yet all hearing notices were served only through e-mail, denying effective opportunity. Further, the CIT(A) passed a non-speaking order without recording issues for determination, decisions thereon or reasons as mandated u/s 250(6).
Holding that the order violated principles of natural justice & statutory requirements, the Tribunal set aside the impugned order & remanded the matter to CIT(A) for de novo adjudication with a direction to pass a reasoned speaking order after affording fair opportunity.
Held: Delay condoned; ex parte non-speaking order violative of s.250(6) set aside; matter remanded for fresh hearing.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal filed by the assessee against the order passed by the NFAC, Delhi vide order dated 30/03/2024 in DIN No. ITBA/NFAC/ S/250/2023-24/1063685455(1) for the assessment year 2017-18.
