Facts of the Case

The assessee, Shri Jai Prakash Jaiswal, filed an appeal against the appellate order dated 04.10.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for Assessment Year 2013-14.

The assessment was completed under Section 147 read with Sections 144 and 144B of the Income Tax Act, determining total income at ₹21,07,200. An addition of ₹17,31,050 was made under Section 69 of the Act. The assessee’s appeal before the CIT(A) was dismissed through an ex-parte order.

 Issues Involved

  1. Whether the ex-parte appellate order passed by the CIT(A) was sustainable when notices were allegedly sent to an incorrect email address.
  2. Whether dismissal of appeal without proper service of notice violates principles of natural justice.
  3. Whether the addition under Section 69 could be sustained without granting reasonable opportunity of hearing.

 Petitioner’s (Assessee’s) Arguments

The assessee contended that no effective opportunity of hearing was granted either at the assessment stage or during appellate proceedings. It was specifically submitted that notices were issued on an incorrect email address and that only one notice for hearing dated 03.10.2024 was received, followed immediately by an ex-parte order dated 04.10.2024.

It was argued that the proceedings were conducted in violation of principles of natural justice and the matter deserved to be restored for fresh adjudication.

 Respondent’s (Revenue’s) Arguments

The learned Departmental Representative expressed no objection to restoration of the matter and left the issue to the discretion of the Tribunal.

 Court Order / Findings

The ITAT observed that reasonable opportunity had not been granted to the assessee either by the Assessing Officer or by the CIT(A). Considering the submissions of both sides, the Tribunal set aside the impugned appellate order dated 04.10.2024.

The issue relating to the addition of ₹17,31,050 under Section 69 was restored to the file of the Assessing Officer with a direction to pass a fresh assessment order in accordance with law after providing reasonable opportunity of being heard to the assessee.

 Important Clarification / Legal Principle

Passing ex-parte orders without ensuring proper service of notice and without granting reasonable opportunity of hearing violates principles of natural justice. Such orders are liable to be set aside and the matter must be restored for fresh adjudication in accordance with law.

Link to download the order - https://www.mytaxexpert.co.in/uploads/1770871610_JAIPRAKASHJAISWALALLAHABADVS.CITAALLAHABAD.pdf  

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