Facts of the Case

The assessee filed an appeal before the CIT(A) against the assessment order. The CIT(A) issued multiple notices but, due to absence of response, proceeded to pass an ex-parte order confirming the action of the Assessing Officer.

The assessee contended before the Tribunal that he had not received the notices and was not aware of the proceedings, particularly due to lack of familiarity with digital/faceless appellate procedures. He requested an opportunity to present his case on merits.

 

Issues Involved

  1. Whether the ex-parte order of CIT(A) was valid when the assessee claimed non-receipt of notices.
  2. Whether failure to ensure proper opportunity of hearing violates principles of natural justice.
  3. Whether the appeal should be restored for fresh adjudication on merits.

 

Petitioner’s Arguments (Assessee)

  • The assessee did not receive the notices allegedly issued by the CIT(A).
  • He was not technologically proficient and could not track faceless proceedings.
  • Transition from physical to digital appellate process caused difficulties in compliance.
  • The appeal was dismissed without granting effective opportunity to present evidence.
  • One more opportunity should be granted in the interest of justice.

 

Respondent’s Arguments (Revenue)

  • Notices were issued on multiple occasions.
  • The assessee failed to respond to the queries raised by the CIT(A).
  • Therefore, passing an ex-parte order was justified.

 

Court Order / Findings (ITAT Allahabad)

The Tribunal observed that although the CIT(A) recorded issuance of notices, there was no evidence regarding proper service of those notices. Considering the assessee’s claim of non-receipt, lack of technical familiarity, and the relatively recent shift to faceless proceedings, the Tribunal held that the order was passed in violation of natural justice.

Accordingly, the Tribunal:

  • Set aside the ex-parte order of the CIT(A)
  • Restored the appeal to the CIT(A) for fresh adjudication
  • Directed disposal of the appeal on merits in accordance with Section 250(6)
  • Allowed the appeal for statistical purposes

  Important Clarification

  • Proper opportunity of hearing is mandatory in appellate proceedings.
  • Service of notices must be demonstrable, especially in faceless proceedings.
  • Ex-parte orders passed without ensuring effective participation violate natural justice.
  • The Tribunal did not adjudicate the merits of the case.
  • The assessee is required to cooperate and participate in remand proceedings.

Link to download the order -  https://itat.gov.in/public/files/upload/1694578128-14%20of%202023%20Keshav%20Deo%20Tripathi(Assessee%20Appeal)%20uder%20section%20143(3)%20of%20the%20Act%20SMC%20(Corrected).pdf

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