Failure to Receive Valid Notice Leads to Ex-Parte Order: ITAT Remands Matter to CIT(A) [Read Order]
The ITAT instructed the CIT(A) to issue a valid notice and provide the assessee with an opportunity to present their case.
![Failure to Receive Valid Notice Leads to Ex-Parte Order: ITAT Remands Matter to CIT(A) [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/ITAT-AHM.jpg "Failure to Receive Valid Notice Leads to Ex-Parte Order: ITAT Remands Matter to CIT(A) [Read Order]")
The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT) remanded the matter to the Commissioner of Income Tax (Appeals) [CIT(A)] for a fresh hearing after an ex-parte order was passed due to the failure to receive a valid notice. Akash Nareshbhai Panchal, appellant-assessee, appealed against the order dated 25.01.2024 passed by CIT(A) for the Assessment Year(AY) 2017-2018.The...
The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT) remanded the matter to the Commissioner of Income Tax (Appeals) [CIT(A)] for a fresh hearing after an ex-parte order was passed due to the failure to receive a valid notice.
Akash Nareshbhai Panchal, appellant-assessee, appealed against the order dated 25.01.2024 passed by CIT(A) for the Assessment Year(AY) 2017-2018.The assessee raised several grounds of appeal against the order passed by the CIT(A). First, the assessee argued that the CIT(A) erred in passing an ex-parte order and dismissing the appeal without considering the facts, as the notice was sent to an incorrect email address.
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The assessee requested that the matter be sent back to the lower authorities for a fresh hearing and that the addition of Rs 7,88,01,702 be deleted after verification of evidence. Second, the assessee contended that the CIT(A) wrongly invoked section 249(4)(b) for dismissing the appeal due to non-payment of advance tax, stating that the provision was not applicable in this case. The assessee asked for the order to be quashed and the issue to be decided on its merits.
Lastly, the assessee challenged the addition of Rs 7,88,01,702 made by the assessing officer(AO), which was treated as unexplained money or unexplained cash credit. The assessee stated that all necessary details and evidence explaining the cash deposits and credit entries were provided and requested the addition be deleted after verification in the interest of justice.
The two member bench comprising Dr.BRR Kumar(Vice President) and Siddhartha Nautiyal(Judicial Member) acknowledged that both parties agreed an ex-parte order had been passed by the CIT(A) without considering the case's merits. They requested the matter be sent back to the CIT(A) for a proper hearing. The ITAT agreed and remanded the matter, instructing the CIT(A) to issue a valid notice and provide the assessee with an opportunity to be heard.
In short,the appeal filed by the assessee was allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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