Natural justice and speaking-order compliance led to remand for fresh adjudication after inadequate hearing in appeal.

An ex parte first appellate order was set aside because the assessee had not been given an effective opportunity of hearing and the order did not comply with the speaking-order requirement under section 250(6) of the Income-tax Act, 1961. The matter was remitted for fresh adjudication, with directions to afford adequate opportunity to the assessee and decide the dispute de novo. The merits of the tax controversy were left open.

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Issues: Whether the ex parte appellate order suffered from violation of natural justice and non-compliance with the requirement of a speaking order, warranting remand for fresh adjudication.

Analysis: The assessee had not been afforded an effective opportunity before the first appellate authority. The appellate order was found not to conform to the mandate of section 250(6) of the Income-tax Act, 1961. In the interest of justice, and without entering into the merits, the matter was restored for fresh decision after giving the assessee sufficient opportunity of hearing.

Conclusion: The ex parte order was set aside and the matter was remitted to the Assessing Officer for de novo adjudication after affording adequate opportunity to the assessee.

Final Conclusion: The appeal succeeded to the extent of remand and fresh consideration, with the ultimate tax controversy left open for decision on merits.

Ratio Decidendi: An order passed without affording effective opportunity of hearing and without compliance with the speaking-order requirement is liable to be set aside and remitted for fresh adjudication in accordance with natural justice.

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