Facts of the Case

The assessee filed an appeal before the Tribunal against the order of the CIT(A) relating to Assessment Year 2012-13. The assessment had been completed under Section 143(3), resulting in various additions, including differences in opening capital, sundry creditors, statutory liabilities, and discrepancies in receipts.

Issues Involved

  1. Whether the ex-parte order passed by the CIT(A) without hearing the assessee was valid.
  2. Whether dismissal of appeal without a speaking order violated principles of natural justice.
  3. Whether the matter required remand for fresh adjudication.

Petitioner’s (Assessee’s) Arguments

  • The assessee did not receive notices of hearing issued by the CIT(A) due to residing in a remote rural area.
  • The impugned order itself was not received initially and had to be obtained through a certified copy.
  • Passing an ex-parte order without opportunity violated principles of natural justice.
  • The matter should be remanded for fresh consideration on merits.

Respondent’s (Revenue’s) Arguments

  • The CIT(A) had issued multiple notices of hearing through speed post and email.
  • Adequate opportunities were provided to the assessee.
  • In absence of appearance or submissions, the CIT(A) was justified in deciding the appeal ex-parte.

Court Order / Findings (ITAT)

  • The CIT(A) passed the order ex-parte due to non-appearance of the assessee.
  • However, the order was not a reasoned or speaking order addressing the issues on merits.
  • Simply dismissing the appeal for non-prosecution without analysis is not legally sustainable.

Important Clarification

  • Appellate authorities must pass reasoned orders even when the assessee is absent.
  • Principles of natural justice require adequate opportunity of hearing.
  • Ex-parte orders lacking proper reasoning are liable to be set aside.
  • Remand is appropriate where adjudication on merits has not been undertaken.

Link to download the order - https://itat.gov.in/public/files/upload/1643696502-ITA%2011%20PDF.pdf

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