Airports Authority of India Vs DCIT (Delhi High Court)
Ex-Parte ITAT Order Set Aside
The Delhi High Court allowed an appeal under Section 260A of the Income Tax Act, 1961, challenging the ITAT’s order dated 02.02.2026. The appellant submitted that the Tribunal proceeded ex-parte and decided the appeal on merits without issuing or serving a hearing notice.
The Court examined the ordersheets and noted that the Tribunal did not function on 08.09.2025, 30.10.2025 and 24.12.2025, with the matter being adjourned. On 24.12.2025, the matter was adjourned to 02.02.2026. On that date, the Tribunal proceeded to hear and dispose of the appeal ex-parte without ascertaining whether the hearing notice had been issued and served.
Non-Compliance with Rule 20
The Revenue could not refute the appellant’s contention that no hearing notice had been issued. The High Court found that the Tribunal had committed a procedural irregularity.
The Court referred to Rule 20 of the Income Tax (Appellate Tribunal) Rules, 1963, which requires the Tribunal to intimate parties of the date and time of hearing and allow sufficient time for them to appear and be heard.
The Court held that absence of service of notice resulted in complete non-compliance with Rule 20 and a manifest failure of justice. Accordingly, the ITAT order dated 02.02.2026 was held contrary to law.
