Facts of the Case

The assessee filed an appeal before the CIT(A) against the assessment order. The CIT(A) issued notices on two occasions but, due to absence of response from the assessee, dismissed the appeal ex-parte.

The Tribunal noted that the notices were issued within a short span and without clearly specifying the time allowed for compliance. The appellate order was passed shortly thereafter without granting sufficient opportunity to the assessee to respond.

Issues Involved

  1. Whether an ex-parte appellate order passed without granting reasonable opportunity is valid.
  2. Whether insufficient time for compliance violates principles of natural justice.
  3. Whether the appeal should be restored for decision on merits.

Petitioner’s Arguments (Assessee)

  • The appeal was dismissed without adequate opportunity to respond to notices.
  • The time between issuance of notices and passing of the order was unreasonably short.
  • The order violated principles of fair hearing.
  • The matter should be adjudicated on merits after granting proper opportunity.

Respondent’s Arguments (Revenue)

  • Notices were issued by the appellate authority.
  • The assessee failed to respond within the stipulated period.
  • Therefore, the ex-parte order was justified.

Court Order / Findings (ITAT Allahabad)

The Tribunal observed that the CIT(A) issued notices in quick succession and passed the order shortly thereafter without clearly specifying compliance timelines. Such action did not provide a fair and reasonable opportunity to the assessee.

Holding that the order was passed in violation of natural justice, the Tribunal:

  • Set aside the impugned order of the CIT(A)
  • Restored the appeal for fresh adjudication on merits
  • Directed the CIT(A) to decide the appeal after granting adequate opportunity
  • Allowed the appeal for statistical purposes

Important Clarification

  • Reasonable opportunity of hearing is a fundamental requirement in appellate proceedings.
  • Short or unclear compliance timelines may invalidate ex-parte orders.
  • Authorities must ensure fairness before dismissing appeals for non-compliance.
  • The Tribunal did not adjudicate the substantive tax dispute.
  • The assessee must cooperate in the fresh proceedings.

Link to download the order -  https://itat.gov.in/public/files/upload/1694424860-65%20of%202023%20Bal%20Bharti%20Nursery%20School(Assessee%20Appeal)%20uder%20section%20143(3)%20of%20the%20Act%20DB%20(Corrected).pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.