Facts of the Case

The assessee, Sonalben Amitkumar Rana, filed an appeal for Assessment Year 2018-19 against the order dated 16.09.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi under Section 250 of the Income-tax Act, 1961.

The CIT(A) disposed of the appeal ex parte due to non-appearance of the assessee. Before the Tribunal, it was submitted that the assessee is a Non-Resident Indian and, during the pendency of appellate proceedings, was residing in Kuwait, due to which she could not effectively pursue the appeal before the CIT(A).

Issues Involved

Whether the CIT(A) was justified in disposing of the appeal ex parte without adjudicating the issues on merits, whether denial of opportunity to an NRI assessee residing abroad violated principles of natural justice, and whether the matter deserved restoration for fresh adjudication.

Petitioner’s Arguments

The assessee submitted that she is an NRI and was residing in Kuwait during the appellate proceedings, which prevented her from properly responding to notices and pursuing the appeal. It was contended that the assessee has a fair case on merits and should be given an opportunity to present her case before the CIT(A) in the interest of justice.

Respondent’s Arguments

The Revenue relied upon the findings of the CIT(A) and supported the ex parte order passed by the appellate authority.

Court Order / Findings

The ITAT Ahmedabad observed that the impugned order passed by the CIT(A) was an ex parte order and that the explanation furnished by the assessee regarding her overseas residence deserved consideration. The Tribunal held that the principles of natural justice require that an assessee be granted a fair opportunity of being heard, especially when the assessee is an NRI residing outside India.

Considering the rival submissions, the Tribunal held that the interests of justice would be best served by restoring the matter to the file of the CIT(A) for adjudication on merits after granting adequate opportunity to the assessee.

Important Clarification

The Tribunal clarified that ex parte disposal of appeals without adjudicating issues on merits is not sustainable where the assessee demonstrates reasonable cause for non-appearance. Effective opportunity of hearing is a mandatory requirement under appellate proceedings.

Final Outcome

The appeal filed by the assessee was allowed for statistical purposes. The ex parte order passed by the CIT(A) was set aside, and the matter was restored to the file of the CIT(A) with a direction to decide the appeal on merits after granting adequate opportunity of being heard to the assessee.

 Link to download order  - https://www.mytaxexpert.co.in/uploads/1769062247_SONALBENAMITKUMARRANAPANCHAMAHALVS.DCITCENTRALCIRCLE1BARODABARODA.pdf

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