Facts of the Case

The assessee, Sudisa Enterprises Private Limited, filed appeals before the ITAT against the orders passed by the CIT(A), Patna-3, Patna for Assessment Years 2014-15, 2015-16 and 2016-17. The CIT(A) had dismissed the assessee’s appeals after granting only one opportunity of hearing.

The assessee submitted before the Tribunal that it could not appear on the scheduled date before the CIT(A) and, as a result, the appeals were disposed of ex parte. It was pleaded that denial of further opportunity caused serious prejudice and that the assessee was willing to cooperate fully in the appellate proceedings if one more opportunity was granted.

Issues Involved

Whether dismissal of appeals by the CIT(A) after granting only one opportunity of hearing was in accordance with principles of natural justice, and whether the matter should be restored for fresh adjudication.

Petitioner’s (Assessee’s) Arguments

The assessee contended that the CIT(A) granted only one opportunity of hearing and that the assessee was unable to appear on that date due to unavoidable reasons. It was argued that dismissal of appeals without adequate opportunity violated principles of natural justice.

The assessee undertook before the Tribunal to diligently pursue the appeals if restored and agreed to bear costs as directed by the Tribunal.

Respondent’s (Revenue’s) Arguments

The Revenue did not raise any serious objection to the prayer of the assessee for restoration of the appeals and left the matter to the discretion of the Tribunal.

Court Order / Findings

The ITAT Ranchi Bench examined the submissions and records. The Tribunal noted that the CIT(A) had granted only one opportunity of hearing before dismissing the appeals. The Tribunal observed that denial of adequate opportunity of being heard runs contrary to the principles of natural justice.

In the interest of justice, the Tribunal held that the issues involved in the appeals should be restored to the file of the CIT(A) for fresh adjudication after granting adequate opportunity of hearing to the assessee. The Tribunal directed that such restoration would be subject to the assessee depositing a cost of ₹5,000 per appeal with the Jharkhand Income Tax Bar Association within 60 days from the date of issue of the order.

Important Clarification

The Tribunal clarified that appellate proceedings should not be disposed of ex parte without granting reasonable opportunity of hearing, and procedural fairness must be maintained even where the assessee defaults on a hearing date. Restoration with costs is an appropriate remedy to balance fairness and procedural discipline.

Final Outcome

The ITAT Ranchi Bench partly allowed the appeals for statistical purposes, set aside the ex parte orders of the CIT(A), and restored the matters to the file of the CIT(A) for fresh adjudication, subject to payment of ₹5,000 per appeal as cost.

The consolidated appeals for Assessment Years 2014-15 to 2016-17 were disposed of by order dated 05 January 2026.

Link to download the order

https://www.mytaxexpert.co.in/uploads/1768994619_SUDISAENTERPRISESPRIVATELIMITEDJAMSHEDPURVS.DCITCENTRALCIRCLE.pdf

 

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