Natural justice in revision proceedings requires a fair hearing; an ex parte section 263 order was set aside for inadequate opportunity.

A revisional order under section 263 was not sustainable where the assessee was proceeded against ex parte without being given due and reasonable opportunity of hearing. The record indicated that compliance was required within a short time, while the assessee explained inability to produce material because of illness caused by coronavirus infection, supported by a medical report. The opportunity afforded was treated as inadequate for a fair defence, so the ex parte revisional order was set aside and the matter was restored to the revisional authority for fresh adjudication after proper hearing.

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Issues: Whether the revisional order passed under section 263 of the Income-tax Act, 1961 without granting due and reasonable opportunity of hearing to the assessee was sustainable.

Analysis: The assessee was proceeded against ex parte in the revision proceedings. The record showed that the notice required compliance within a short period, while the assessee claimed inability to furnish the material because of illness caused by coronavirus infection, supported by a medical test report. In these circumstances, the opportunity afforded was not treated as adequate for a fair defence, and the matter required reconsideration after hearing the assessee properly.

Conclusion: The ex parte revisional order was set aside and the matter was restored to the revisional authority for fresh adjudication after providing due and reasonable opportunity of hearing to the assessee.

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