ITAT Restores Appeal after NFAC Passed Ex-parte, Non-speaking Order

ITAT Restores Appeal after NFAC Passed Ex-parte, Non-speaking Order

The assessee filed an appeal against the NFAC order dated May 21, 2025, for A.Y. 2018-19, along with a stay petition regarding a tax demand of Rs. 1.50 crore. He claimed that while partial details were submitted, the AO passed the assessment order without considering his adjournment request.

The CIT(A) issued four notices, but the assessee did not respond, leading to an ex-parte, non-speaking order. He explained that notices were only uploaded on the ITBA portal without alerts, which caused his non-compliance. Aggrieved, the assessee filed the present appeal before the ITAT.

Main Issue Before Tribunal: Whether an appellate order passed ex parte without proper opportunity for hearing or reasoned discussion could be sustained, especially when the assessee claimed non-receipt of real-time notice alerts on the ITBA portal.

ITAT’s Decision: The ITAT observed that the CIT(A) passed an ex-parte and non-speaking order due to the assessee’s failure to respond to the hearing notices. While criticizing the assessee’s lack of compliance, the Tribunal held that in the interest of justice and fair play, the matter should be restored to the CIT(A) for fresh adjudication.

The CIT(A) was directed to provide a reasonable opportunity for a hearing, and the assessee was instructed to cooperate and avoid unnecessary adjournments. As a result, the stay petition was rejected as infructuous and the appeal was granted for statistical reasons.

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