The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) quashed an ex parte order issued by the Commissioner of Income Tax (Appeals) [CIT(A)] due to the assessee did not receive the income tax hearing notice and remanded the matter for a fresh hearing.
Sri Selvalakshmi Feeds & Farms, the assessee, had appealed against the order issued by the CIT(A) after being aggrieved by an ex parte decision. The CIT(A) had passed the order following the assessee’s non-appearance for hearings scheduled on February 13, 2024, and February 26, 2024.
According to CIT(A), notices for these hearings were sent to the assessee but no response or representation was received leading to ex parte proceedings. Aggrieved by the Commissioner of Income Tax (Appeals) [CIT(A)], the assessee approached the ITAT.
Before the ITAT, the assessee’s counsel argued that the assessee had never received these notices and was thus unaware of the scheduled hearings. The assessee’s counsel argued that CIT(A) failed to adjudicate the grounds raised in the appeal and did not issue a speaking order as required by law.
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The assessee’s counsel claimed that this lack of proper consideration deprived the assessee of its statutory right to be heard and to have its grievances adequately addressed. The assessee’s counsel assured the tribunal that accurate contact details, including a valid email ID, would be provided to facilitate smooth communication in the remanded proceedings.
The two-member bench comprising Aby T. Varkey (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member) reviewed the submissions made by both parties. The tribunal observed that CIT(A) was obligated under Section 250(6) of the Income Tax Act, 1961, to issue a detailed and reasoned order addressing each ground of appeal raised by the assessee.
The tribunal explained that Section 250(6) of the Income Tax Act, 1961 requirement had not been fulfilled making the CIT(A)’s decision procedurally flawed. Recognizing the procedural fairness, the tribunal held that the assessee deserved an opportunity to present its case in full.
The tribunal directed the CIT(A) to provide adequate notice and allow the assessee to file written submissions, including all relevant supporting documents, during the rehearing process.
The tribunal explained the importance of adhering to principles of natural justice and ensuring that both parties are afforded fair representation. The appeal was allowed for statistical purposes.
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