Indra Devi Vs AC/DC (ITAT Patna)
The Income Tax Appellate Tribunal (ITAT), Patna Bench, on March 12, 2025, restored the appeal of assessee Indra Devi for Assessment Year 2013-14 to the Assessing Officer (AO) for a fresh, meritorious adjudication. This decision came despite the assessee and her representative’s continuous absence during proceedings before both the AO and the Commissioner of Income-tax (Appeals) [CIT(A)], which had led to an ex-parte assessment and subsequent dismissal of her appeal.
The assessment was initially framed under Section 147 read with Section 144 of the Income Tax Act, 1961, because the assessee failed to appear for hearings before the AO. Similarly, before the CIT(A), there was no representation, resulting in the dismissal of her appeal for lack of information and documents.
During the ITAT hearing, neither the assessee nor her Authorized Representative was present. However, the Departmental Representative (DR) suggested that the appeals be restored, acknowledging the history of non-representation. The ITAT, after reviewing the records and considering the DR’s submission, decided to remand the case. It held that, in consonance with the principles of natural justice and to ensure justice, the assessee deserved another opportunity for a hearing. Given that the case was decided ex-parte at the AO’s level without any representation, the Tribunal deemed it “reasonable and fair” to restore the appeals directly to the AO. The AO has been directed to decide the matter on its merits after providing the assessee a reasonable opportunity of being heard. The appeals were allowed for statistical purposes, indicating a procedural restoration rather than a decision on the tax merits. No specific judicial precedents were cited in this order.
