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.
