Omax Minerals Pvt Ltd Vs DCIT (ITAT Raipur)
Principle of Natural Justice Reinforced: Appeal Restored for Fresh Consideration
Assessee faced a survey u/s 133A at its business premises, followed by a search u/s 132 at related group concerns. Consequently, a notice u/s 153C was issued. Assessee treated its original return u/s 139 as filed u/s 153C.
On scrutiny, AO made an addition of ₹4,37,260 as unaccounted expenditure, resulting in assessed income of ₹2.87 crore. Penalty proceedings u/s 271(1)(c) were initiated for concealment/inaccurate particulars. Since the assessee did not respond to notices, the AO imposed 100% penalty of tax sought to be evaded.
Assessee’s appeal before CIT(A) was dismissed ex-parte, with only two notices issued (dated 10/03/2025 & 19/03/2025), fixing hearings for 17/03/2025 & 24/03/2025. CIT(A) confirmed penalty without adjudicating merits.
Before the ITAT, Assessee argued denial of reasonable opportunity. Tribunal noted that less than 15 clear days were provided between notices & hearing, which is inadequate & amounts to violation of principles of natural justice. Reliance was placed on St. Paul’s Anglo-Indian Education Society v. CIT (262 ITR 377, Patna HC), which held that adjudication without reasonable opportunity is unjustified.
Accordingly, ITAT held that the appellate proceedings were procedurally defective. The ex-parte order of CIT(A) was set aside & remanded back for de-novo adjudication with directions to pass a speaking order u/s 250(6) after granting proper opportunity to assessee.
