ITAT quashes Ex-Parte Assessment since No Notice for Hearing was served to Assessee [Read Order]

ITAT - Ex-Parte Assessment - Notice for Hearing - Taxscan

The Kolkata bench of the Income Tax Appellate Tribunal (ITAT) last day quashed an ex-parte Assessment framed under section 144 of the Income Tax Act, 1961, and the order passed by the first appellate authority on the ground that no notice for hearing was served to the assessee before passing the assessment.

The assessee challenged the assessment order passed under section 144 and the order of the first appellate authority confirming the same.

Before the Tribunal, the assessee argued that notice of hearing was not served on the assessee and hence they did not appear and represent the case before the lower authorities.

The Tribunal found that the first appellate authority has passed an ex-parte order as the assessee had not responded to the notices of hearing on 09.03.2017 and 14.03.2017.

The Tribunal relied on a plethora of judgments where the Courts were of the opinion that the principles of natural justice must be observed during the assessment proceedings and the violation of the same would invalidate the same.

The division bench including Judicial Member Aby T. Varkey and Accounting Member J. Sudhakar Reddy, while quashing the order and remitting the matter back to the Assessing Officer for reconsideration, found that the act of non-serving of notice amount to violation of natural justice and therefore, the assessment need to be quashed.

“Keeping in view the totality of the facts and circumstances of the case and also the orders of the Co-ordinate Bench of the Tribunal in similar matters, we set aside this assessment to the file of the AO for fresh adjudication in accordance with the law, after giving the assessee adequate opportunity of being heard,” the bench said.

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