Case Law Details
Bankey Bihari Ispat Private Limited Vs ACIT (ITAT Dehradun)
Ex-Parte Assessment & Appeal Can’t Stand: Matter Sent Back for De Novo Adjudication
Dehradun ITAT set aside both the ex-parte assessment order u/s 143(3) and the ex-parte appellate order of NFAC-CIT(A), holding that non-adjudication of grounds on merits violates principles of natural justice.
The assessment dated 16-12-2019 was completed ex-parte due to non-appearance of the Assessee, and the first appeal was also dismissed ex-parte without deciding all grounds raised. While Revenue argued that the Assessee was a chronic defaulter, ITAT noted that even in ex-parte proceedings, the authorities are duty-bound to pass reasoned orders and adjudicate issues on merits.
Considering that neither AO nor CIT(A) examined the issues substantively, Tribunal held that the matter required fresh consideration. Accordingly, ITAT restored the case to the file of the AO for de novo assessment, directing the AO to grant proper opportunity of hearing, and cautioning the Assessee to participate in proceedings without fail.
The appeal was thus partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DEHRADUN
The present appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals)/NFAC, Delhi [‘Ld. CIT(A)’ for short] dated 04.01.2024 for the Assessment Year 2017-18.
2. An assessment Order came to be passed on 16.12.2019 u/s 143(3) of the Income Tax Act, 1961 (‘Act’ for short) by making certain additions. Assessee preferred an Appeal before the Ld. CIT(A) which has been dismissed on 04.01.2024 vide order impugned. As against the order of the Ld. CIT(A) dated 04.01.2024, Assessee preferred the present Appeal.
3. 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 all 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.
4. 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.
5. 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 Assessee is partly allowed for statistical purpose.
Order Pronounced in the Open Court on 17/12/2025.
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