*******Ex-Parte Assessment Remanded as Assessee Was Abroad & Notice not Communicated by Consultant

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Balwinder Pal Singh Vs ITO (ITAT Chandigarh)

The appeal concerns the assessee’s challenge to the order dated 06.03.2025 issued by the Commissioner of Income Tax (Appeals), NFAC, Delhi, relating to the assessment year 2012–13.

At the outset, the assessee’s counsel drew attention to the assessment order passed under Section 144 of the Income Tax Act, 1961. The assessment was completed ex parte as a best-judgment assessment. The counsel further pointed out that the impugned order of the CIT(A) was also passed ex parte.

It was submitted that during the relevant period, the assessee was residing abroad. Any notices issued were allegedly served only on the tax consultant, who did not communicate them to the assessee. As the assessee was not in India, he was unable to appear before the authorities and could not present his case. The counsel requested that an opportunity be granted to the assessee to present the matter before the Assessing Officer (AO).

The Departmental Representative relied on the orders passed by the lower authorities without making further submissions.

After considering both sides, the Tribunal held that the interest of justice would be served by allowing the assessee an opportunity to present his case before the AO. However, this relief was made conditional upon payment of costs. The Tribunal directed the assessee to deposit ₹10,000 in the Prime Minister Relief Fund. It was further directed that proof of such deposit be furnished before the AO.

Accordingly, the Tribunal set aside the impugned order of the CIT(A) and restored the matter to the AO for fresh adjudication subject to fulfilment of the deposit condition. The appeal was treated as allowed for statistical purposes. The order was pronounced on 06 November 2025.

FULL TEXT OF THE ORDER OF ITAT CHANDIGARH

The present appeal has been preferred by the assessee against the order dated 06.03.2025 of the Commissioner of Income Tax (Appeals) NFAC, Delhi [in short ‘the CIT (Appeals)] pertaining to 2012-13 assessment year.

2. At the outset, ld. counsel for the assessee has invited my attention to the impugned assessment order to submit that the same is an ex-parte best judgement assessment order passed u/s 144 of the Income Tax Act, 1961 (in short ‘the Act’). He has further invited my attention to the impugned order of the CIT (Appeals) to submit that the same is also an ex-parte order of the CIT (Appeals). It has been further submitted that the assessee, during the period was residing abroad. Notices of hearing, if any, were served upon the concerned tax consultant of the assessee who did not further inform the assessee. That since the assessee was not in India, hence could not present his case before the lower authorities. The ld. Counsel has submitted that the assessee may be given an opportunity to present his case before the AO.

3. The ld. DR, however, has relied upon the findings of the lower authorities.

4. After hearing the rival submissions, in my view the interest of justice will be well served if the assessee be given an opportunity to present his case before the AO, however subject to payment of suitable costs, which I assess at Rs.10,000/- to be deposited in Prime Minister Relief Fund. Accordingly, the impugned order of the ld. CIT (Appeals) is set aside and the matter is restored to the file of AO for decision afresh but subject to the condition that the assessee will deposit a sum of Rs. 10,000/-to the Prime Minister Relief Fund and furnish the evidence/receipt of such deposit before the AO.

6. With the above observations, appeal of the assessee is treated as allowed for statistical purposes.

Order pronounced on 06^th November,2025.