Facts of the Case

The assessee, Nawab Ali Fatehpura Pakaddi, filed an appeal before the Income Tax Appellate Tribunal, Allahabad Bench, challenging the order of the CIT(A)/NFAC dated 15.06.2022 for Assessment Year 2017-18. The appeal was filed with a delay of 171 days, which the assessee attributed to misplacement of the order. An affidavit was submitted explaining the delay. The Tribunal condoned the delay, noting absence of deliberate negligence, and admitted the appeal for hearing.

Issues Involved

  1. Whether the CIT(A) was justified in passing an ex-parte order without hearing the assessee.
  2. Whether failure to comply with Section 250(6) invalidates the appellate order.
  3. Whether such action violates principles of natural justice.

Petitioner’s Arguments (Assessee)

  • The CIT(A) passed the impugned order ex-parte without providing a meaningful opportunity of hearing.
  • The action was contrary to principles of natural justice.
  • Therefore, the order required interference and reconsideration on merits.

Respondent’s Arguments (Revenue)

  • The CIT(A) had issued notices on multiple occasions, and the assessee failed to respond.
  • Consequently, the appellate authority proceeded to decide the matter ex-parte and confirmed the Assessing Officer’s action.

Court Order / Findings (ITAT Allahabad)

  • The Tribunal observed that although notices were issued on four occasions, it was not evident whether they were properly served on the assessee.
  • The CIT(A) passed the order without complying with the mandatory requirements of Section 250(6), which obligates the appellate authority to pass a reasoned order dealing with the grounds of appeal.
  • Failure to follow statutory procedure warranted interference.
  • Accordingly, the Tribunal set aside the impugned order and restored the matter to the file of the CIT(A) for fresh adjudication on merits after providing proper opportunity of hearing to the assessee.

Important Clarification by the Tribunal

  • The assessee was directed to submit written submissions and relevant documents before the CIT(A).
  • The CIT(A) was directed to decide the appeal afresh in accordance with law after hearing the assessee.

Link to download the order –

 https://itat.gov.in/public/files/upload/1698727524-15%20of%202023%20Nawab%20Ali%20Fatehpura%20Pakaddi(Assessee%20Appeal)%20uder%20sectionhe%20Act%20SMC%20(Corrected).pdf

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