Ex-Parte Order Set Aside and Disputed Issue Remitted to CIT(A) for Fresh Adjudication After Hearing

By | August 13, 2026
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Ex-Parte Order Set Aside and Disputed Issue Remitted to CIT(A) for Fresh Adjudication After Hearing

Issue

Whether the ex-parte order passed by the CIT(A) confirming the assessment addition under Section 147 read with Section 144 should be set aside and remitted back to the CIT(A) to provide the assessee one more opportunity of hearing to substantiate its case with evidence.

Facts

  • The case pertains to Assessment Year 2018-19, during which the assessee did not file a return of income.
  • Information received via the NMS portal indicated that the assessee had sold immovable property during Financial Year 2017-18, leading to the initiation of reassessment proceedings.
  • The Assessing Officer (AO) issued a notice under Section 148 and subsequently a notice under Section 142(1) due to initial non-compliance.
  • As the assessee failed to comply with the notices, the AO completed the assessment ex-parte under Section 147 read with Section 144, making an addition of Rs. 42 lakhs.
  • On appeal, the CIT(A) issued hearing notices, noted non-compliance by the assessee, and dismissed the appeal ex-parte while upholding the AO’s order.
  • The assessee challenged the addition, submitting that there could be valid reasons for non-appearance/non-compliance before the lower authorities and requesting a fresh hearing opportunity.

Decision

  • The Tribunal held that since the assessee had raised specific grounds of appeal challenging the addition, and potential reasons for non-appearance could not be ruled out, the assessee ought to be provided another opportunity to produce evidence.
  • The order of the CIT(A) was set aside.
  • The disputed issue was remitted back to the file of the CIT(A) for fresh adjudication after providing adequate opportunity of hearing to the assessee.

Key Takeaways

  • Affording Opportunity of Hearing: Appellate authorities must ensure that a taxpayer is given a fair and meaningful opportunity to present evidence and contest additions on merits before finalizing ex-parte decisions.
  • Remand to First Appellate Authority: Where non-compliance at the CIT(A) level is due to plausible reasons, setting aside the order and remanding the matter back to the CIT(A) upholds the principles of natural justice.
  • Merit-Based Adjudication: Reassessment additions should be tested on their factual merits rather than being confirmed solely due to procedural defaults by the assessee.
IN THE ITAT PUNE BENCH ‘SMC’
Bhaskar Laxman Porje
v.
ACIT
Pavan Kumar Gadale, Judicial Member
IT Appeal No. 1770 (Pune) of 2026
[Assessment year 2018-19]
JULY  9, 2026
Akshay Modi, AR for the Appellant. Manish Mehta, JCIT. Sr. DR for the Respondent.
ORDER
1. The assessee has filed the appeal against the order of CIT(A)/NFAC, Nasik passed u/sec 143(3) r.w.s. 147 and u/sec250 of the Income Tax. The assessee has raised the grounds of appeal challenging the ex-parte order of the CIT(A) and sustaining the addition made by the Assessing Officer.
2. At the time of hearing, the Ld.AR submitted that there is a delay in filing the appeal before Hon’ble Tribunal and the delay was not intentional and the assessee has filed an affidavit for condonation of delay. On consideration of facts and information mentioned in the affidavit, there is a reasonable cause explained and the Ld. DR. has no specific objections. Accordingly, the delay is condoned and the appeal is admitted.
3. The brief facts of the case are that, Assessing Officer (A.O) has received information from the NMS portal that the assessee has sold immovable property in the F.Y. 2017-18 and the assessee has not filed the return of income for the A.Y. 2018-19. The Assessing Officer has reason to believe that income as escaped assessment and issued notice u/sec 148 of the Act and there was no compliance. Further, notice u/sec 142(1) of the Act was issued to the assessee to produce the information and supporting evidences and there was no compliance. Finally, the A.O considering the information available on record has invoked the provisions of Section 144 of the Act and made addition of Rs. 42,00,000/- and assessed the total income of Rs.42,00,000/- and passed the order u/sec 147 r.w.s. 144 of the Income Tax Act dated 27.03.2023.
4. Aggrieved by the order, the assessee has filed an appeal with the CIT(A). Whereas the CIT (A) has considered grounds of appeal, statement of facts, finding of the A.O and has issued notice of hearing and since there was no compliance, CIT(A) considering the information on record has confirmed the action of the AO and dismissed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed appeal with Hon’ble Tribunal.
5. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the AO overlooking the information of the assessment proceedings and the Ld.AR mentioned that non-compliance of notices before the CIT(A) is not a wanton act and the assessee has a good case on merits and shall substantiate with material evidences and prayed for an opportunity before the Lower authorities. Per contra, the Ld.DR supported the order of CIT(A).
6. Heard the rival submissions and perused the material on record. Prima facie CIT(A) has passed the order considering the facts that there is no compliance in spite of providing adequate opportunity of hearing and notices were issued. Therefore, CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismiss the appeal ex-parte confirming the action of the Assessing Officer. Whereas the CIT(A) has issued notices referred at Para 5 of the order but there was no response. Whereas the assesse has raised grounds of appeal challenging the addition made by the A.O and there could be various reasons for non appearance/ non compliance which cannot be overruled. Therefore, considering the facts, circumstances, submissions and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the disputed issue to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And the grounds of appeal of the assesse are allowed for statistical purposes.
7. In the result, the appeal filed by the assessee is allowed for statistical purposes.