Shaheed Bhagat Singh Vs DCIT (ITAT Chandigarh)
Ex-Parte Orders Cannot Substitute Merits Adjudication: ITAT Chandigarh Restores Exemption Appeals
The Chandigarh Bench of the ITAT allowed the assessee-society’s appeals for AYs 2014-15, 2015-16 and 2016-17 for statistical purposes, holding that the CIT(A), NFAC erred in passing ex-parte orders without adjudicating the issues on merits, thereby violating principles of natural justice.
The Tribunal observed that even if the assessee had sought adjournments, the CIT(A) is statutorily required to decide appeals on merits based on material available on record, which was not done in the present case. The impugned orders merely confirmed the assessment orders mechanically, without any independent reasoning.
Accordingly, the ITAT set aside the CIT(A)’s orders for all three years and remanded the matters for de-novo adjudication on merits, directing the CIT(A) to grant a proper opportunity of hearing and the assessee to cooperate without causing unnecessary delay. The appeals were thus allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
Captioned appeals for different assessment years have been preferred by the assessee against the separate orders, each dated 13.01.2025, passed by the Ld. Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi.
2. Though numerous identical and similar grounds have been filed by the Assessee for each assessment year but the main grievance of the Assessee is that the Ld. CIT(A) has passed by the orders ex-parte without affording an opportunity of being heard which is against the principle of natural justice.
