Blue Breeze Trading LLP Vs DCIT (ITAT Delhi)
Ex-parte 153C Won’t Survive: No Effective Hearing, No Finality—ITAT Delhi Sends Blue Breeze Back for De-novo
Assessee-LLP, engaged in helicopter & aircraft services, was subjected to proceedings u/s 153C pursuant to search on a third party. Assessment was completed u/s 153C r.w.s. 144 with addition of ₹19.80 lakh u/s 69 on alleged unexplained investment. Appeal before CIT(A)-NFAC was disposed ex-parte, with observations that despite multiple notices, Assessee failed to effectively prosecute the appeal, though merits were briefly touched.
ITAT Delhi set aside the appellate order. Tribunal noted that right of hearing u/s 250(2) is substantive, not illusory, and effective opportunity is sine qua non. Both the assessment u/s 144 and CIT(A)’s ex-parte disposal suffered from lack of effective hearing, resulting in violation of principles of natural justice. Tribunal also observed that even on merits, AO’s reasoning on the addition was uncertain and unconvincing, reinforcing the need for fresh adjudication.
Accordingly, ITAT quashed the impugned CIT(A) order, set aside the assessment consequences, and restored the matter to AO for de-novo consideration after granting proper opportunity to Assessee. All issues were left open.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal is filed by the assessee /appellant against the order of Learned Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the “CIT(A)”], passed under section 250 of the Income Tax Act, 1961 [hereinafter Blue Breeze Trading LLP, Delhi referred to as “the Act”] dated 29.07.2025 for the A.Y. 2013-14, wherein the appeal was dismissed ex parte as the appellant/assessee has failed to respond to the notice issued on 5 dates and no one has attended the proceeding on behalf of the assessee but the ld. CIT(A) proceeded to decide the same on merit and the assessment order dated 30.03.2023 was upheld.
