ITAT Grants Lifeline to Absentee Assessee, Slams CIT(A) for "No-Reason" Ex-Parte Order [Read Order]
While acknowledging that the assessee’s non-cooperation was not appreciated, the bench highlighted a critical legal flaw
ITAT Grants Lifeline - Lifeline - Assessee
ITAT Grants Lifeline - Lifeline - Assessee
The Income Tax Appellate Tribunal (ITAT), Agra Bench, has set aside an ex-parte order that confirmed a major addition against an assessee, criticizing the complete absence of any reasoning in the decision. The Tribunal granted a final opportunity for the case to be heard on its actual merits.
Ashok Kumar Goyal, a proprietor from Gwalior, who faced an addition of Rs. 1.23 crore for the Assessment Year 2013-14. The Assessing Officer had treated this amount as income from other sources, rejecting the assessee’s claim that it was a short-term capital gain. When the matter went to the Commissioner of Income Tax (Appeals), or CIT(A), the assessee failed to appear despite several notices. The CIT(A) subsequently dismissed the appeal, upholding the addition in an ex-parte order.
The ITAT, however, took serious issue with the quality of the CIT(A)'s order. While acknowledging that the assessee’s non-cooperation was not appreciated, the bench highlighted a critical legal flaw. It found that the impugned order was passed without any discussion on the merits of the case, completely bypassing the mandatory requirement under Section 250(6) of the Income-tax Act. This section requires the first appellate authority to clearly state the points for determination, the decision thereon, and the reasons for such a decision.
The ITAT Bench comprising Sunil Kumar Singh (Judicial Member) and Brajesh Kumar (Accountant Member) ruled that the failure to provide any reasoning was a fundamental violation of the principles of natural justice. In the interest of fairness, it set aside the CIT(A)’s order and remanded the matter for a fresh hearing.
The ITAT issued a clear directive for the assessee to be diligent and cooperative this time, warning against seeking adjournments without truly compelling reasons. It also instructed the CIT(A) to ensure a proper adjudication that fully observes the principles of natural justice.
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