CIT(A) Ignores Adjournment Request: ITAT Restores Appeal Citing Violation of Principles of Natural Justice [Read Order]
The Tribunal held that failure to consider an adjournment request without informing the assessee constitutes a violation of the principles of natural justice and restored the matter for fresh adjudication
![CIT(A) Ignores Adjournment Request: ITAT Restores Appeal Citing Violation of Principles of Natural Justice [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/ITAT-Appeal-CITA-Order-Income-Tax-Tribunal-taxscan.jpeg "CIT(A) Ignores Adjournment Request: ITAT Restores Appeal Citing Violation of Principles of Natural Justice [Read Order]")
The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) restored the matter observing that the Commissioner of Income Tax (Appeals) [CIT(A)] passed an ex-parte order without providing an effective opportunity of hearing. Kamna Jain (assessee) had filed her return of income for the Assessment Year 2012–13 declaring an income of Rs. 3,06,000. Based on information regarding cash...
The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) restored the matter observing that the Commissioner of Income Tax (Appeals) [CIT(A)] passed an ex-parte order without providing an effective opportunity of hearing.
Kamna Jain (assessee) had filed her return of income for the Assessment Year 2012–13 declaring an income of Rs. 3,06,000. Based on information regarding cash deposits amounting to Rs. 20 lakhs, the Assessing Officer (AO) reopened the assessment and made additions under Section 69A of the Income-tax Act, 1961.
Aggrieved by the order of the AO, the assessee filed an appeal before the CIT(A). However, the CIT(A) passed an order by confirming the addition to the extent of Rs. 17 lakhs. The CIT(A) passed the order without addressing the assessee’s adjournment request.
Aggrieved by the CIT(A)’s order, the assessee filed an appeal before the ITAT. The Counsel for the assessee submitted that the CIT(A)’s failure to intimate the rejection request of the adjournment application and proceeding to dispose of the appeal amounted to a violation of the natural justiceprinciple.
Get a Copy of Direct Taxes Law and Practices Including Tax Planning with Free E-Book Access, Click Here
On the other hand, the counsel for the revenue supported the order of the CIT(A). The counsel also submitted that the CIT(A) took a liberal approach while passing the appeal order by reducing addition from Rs. 20 lakhs to Rs. 17 lakhs.
Therefore, the counsel contended that it was incorrect on the part of the assessee to state that the CIT(A) made an arbitrary decision.
The Single-Member Bench comprising Ravish Sood (Judicial Member) observed that the appeal was disposed of without intimating the rejection of adjournment request or providing a reasonable opportunity to the assessee.
The Tribunal observed that the denial of an opportunity to be heard, without even a formal rejection of the request for adjournment, violates the principles of natural justice. Therefore, the tribunal restored the matter to the file of the CIT(A) for de novo adjudication after affording the assessee a proper opportunity of hearing.
🚨 BIG Tax Changes Coming? 🚨 The Income Tax Bill 2025 Reveals It All! 📖 Click Here
The tribunal also directed the assessee to comply with notices of the CIT(A). Thereby the appeal of the assessee was allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
