1987 (6) TMI 89 - AT - Income Tax

Tribunal vacates ex parte assessments, emphasizes evidence-based adjudication.

The Tribunal vacated the orders upholding ex parte assessments under section 144 for multiple assessment years, citing lack of justification and improper ... Advance Tax, Failure To File Estimate, Late Filing Issues:Challenging ex parte assessments under section 144 for multiple assessment years due to alleged lack of justification and improper confirmation of assessments.Analysis:The appeals were directed against a common order upholding ex parte assessments under section 144 for assessment years 1976-77 to 1979-80. The primary contention was the lack of justification for the ex parte order and the improper confirmation of assessments. The appellant's representative requested adjournment on the hearing date, but it was rejected due to the high demands involved. The appellant argued that there was confusion regarding the adjournment request. The revenue contended that due to a history of defaults, the AAC's order was justified. The AAC's order dismissed the appeals, citing the high demands and the representative's failure to appear. The appellant highlighted contradictions in the AAC's order and argued that past assessments were not considered in estimating income. The appellant also emphasized that there was no non-compliance before the AAC and requested adjournments due to time constraints. The Tribunal noted that passing ex parte orders should be based on specific provisions under the Income-tax Act and that assessments should be closely analyzed based on evidence. Consequently, the Tribunal vacated the AAC's orders for fresh adjudication from the stage of filing the first appeals.