ITAT Sets Aside Ex-Parte CIT(A) Order, Slaps ₹10k Cost on Assessee for Chronic Delays [Read Order]

The Income Tax Appellate Tribunal (ITAT), Nagpur Bench, has set aside an ex-parte order issued by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, and remanded the matter for fresh adjudication after observing multiple procedural lapses and non-appearance during hearings.

The appeals were filed by Ashish Keshav Ukey in relation to the assessment year 2017–18, challenging the CIT(A)'s order dated 26 June 2024.

The Tribunal noted that the appeals were filed with a delay of 29 days without any application for condonation supported by an affidavit. It was further observed that even the initial appeal before the CIT(A) was delayed, with no steps taken by the assessee to regularise the delay or respond to multiple statutory notices.

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The Bench remarked that the assessee neither filed for condonation nor appeared before the appellate authority, despite being served notices, which led to the dismissal of the appeal as time-barred. However, applying the principles of natural justice, the Tribunal decided to provide one final opportunity to the assessee to present his case.

The ITAT directed that the ex-parte order passed by the CIT(A) be set aside and remitted the matter for fresh adjudication on merits.

The assessee has been instructed to file a condonation application supported by a sworn affidavit before the CIT(A), who has been given the discretion to consider it in accordance with law. The assessee was also cautioned against seeking adjournments without justified reasons during the re-hearing.

Taking note of the persistent non-compliance and delays, the Bench Comprising V. Durga Rao (Judicial Member) and K M Roy (Accountant Member) imposed a cost of ₹5,000 per appeal totalling ₹10,000, to be paid to the Maharashtra State Legal Services Authority. Proof of payment must be submitted before the CIT(A) during further proceedings.

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