Ex-Parte Orders Passed without Fair Opportunity: ITAT sets aside CIT(A) Order
ITAT held that CIT(A) failed to issue a speaking order as required under Section 250(6) and directed a fresh assessment with a reasonable opportunity
The Lucknow Bench of Income Tax Appellate Tribunal(ITAT) set aside the ex-parte order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] after finding that the assessee was not given a fair opportunity to present the case. Bhavan Ravat, appellant-assessee, faced an ex-parte assessment order dated December 5, 2019, issued under Section 144 of the Income Tax Act. The AO...
The Lucknow Bench of Income Tax Appellate Tribunal(ITAT) set aside the ex-parte order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] after finding that the assessee was not given a fair opportunity to present the case.
Bhavan Ravat, appellant-assessee, faced an ex-parte assessment order dated December 5, 2019, issued under Section 144 of the Income Tax Act. The AO determined the income at ₹2,11,92,760, significantly higher than the returned income of ₹48,36,690. Subsequently, the appeal was dismissed through an ex-parte order by the CIT(A) on November 30, 2022.
Read More: ITAT Remands Case to CIT(E) for Fresh Hearing, Citing Violation of Natural Justice in Ex-Parte Order
The assessee's counsel argued that the AO and CIT(A) issued orders without providing a fair opportunity. It was also stated that CIT(A) did not address the appeal’s merits. Therefore, a remand was requested for a fresh assessment with a fair opportunity.
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In response, the Departmental Representative did not object and left the decision to the Bench.
The two member bench comprising Kul Bharat(Vice President) and Anadee Nath Misshra(Accountant Member) examined the submissions and the record. It held that CIT(A) was required under Section 250(6) of the Income Tax Act to issue a speaking order addressing the appeal’s merits. Since this was not done, the ITAT set aside CIT(A)’s order and directed the Assessing Officer to conduct a fresh assessment after providing a reasonable opportunity.
In short,the appeal filed by the assessee was partly allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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