2025 (5) TMI 1550 - AT - Income Tax

Ex parte orders as no notice was received by the assessee - HELD THAT - We find that the submission made by the assessee appears to be factually correct. The letter issued by the State Bank of India which was placed before us suggests that the premises of the assessee was seized for the failure by the assessee to repay the loans to the bank. Therefore the contention of the assessee that it had not received any notice appears to be true. It is also the submission of the Ld. Counsel that due to search on 17.01.2017 all the books and documents etc. were seized by the Department and only in the month of June 2024 the assessee could get the copies of the documents and books of accounts. Both the assessments as well as the orders passed by the Ld. CIT(A) were ex parte orders. We feel it appropriate to set aside the orders of the authorities below and restored these appeals to the file of the AO with a direction to make denovo assessments in accordance with law after providing adequate opportunity of being heard to the assessee.

Summary

The ITAT Delhi, in appeals filed by the assessee against ex parte orders of the Ld. CIT(Appeals)-3, Gurgaon for AYs 2010-11 to 2016-17, noted that the assessee did not receive any notice due to attachment of properties by the bank (letter dated 28.11.2017) and seizure of documents during a search on 17.01.2017. The assessee obtained copies of documents only in June 2024 and sought restoration of appeals for fresh assessment. The Tribunal observed that both assessments and appellate orders were ex parte and found the assessee's submissions factually correct. Accordingly, the ITAT held it "appropriate to set aside the orders of the authorities below and restore these appeals to the file of the Assessing Officer with a direction to make denovo assessments in accordance with law after providing adequate opportunity of being heard to the assessee." The appeals were allowed for statistical purposes.