CIT(A)'s ex-parte order violated natural justice by denying adequate hearing opportunity under sections 250-251

ITAT Kolkata held that CIT(A)'s ex-parte order violated natural justice principles by failing to provide adequate hearing opportunity to the assessee. The appellate authority must pass speaking orders examining merits after analyzing record materials per sections 250-251. Since CIT(A) made additions without meritorious findings on assessee's submissions and passed ex-parte order without proper hearing, matter was remitted back to CIT(A) for objective observations with directions to grant reasonable hearing opportunity. Appeal allowed for statistical purposes.

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Issues:
- Appeal against the order of Ld. CIT (A)
- Grounds raised by the assessee
- Delay in filing the appeal
- Assessment proceedings and additions made by Ld. AO
- Dismissal of appeal by Ld. CIT (A)
- Plea to remit the matter back to Ld. CIT (A)
- Powers of Commissioner (Appeals) under section 250 of the Act
- Principles governing the exercise of powers by the First Appellate Authority
- Remitting the matter back to Ld. CIT (A)
- Decision and outcome of the appeal

Analysis:

The appeal before the Appellate Tribunal ITAT Kolkata was filed against the order of the Ld. CIT (A) concerning the assessment order passed by the ITO, Ward-9(2), Kolkata under section 143(3) of the Income-tax Act, 1961 for AY 2017-18. The grounds raised by the assessee included contentions regarding the arbitrary nature of the Ld. CIT (A)'s order, lack of proper opportunity for being heard, failure to decide issues ground-wise, and errors in disallowing certain expenses and losses.

A brief delay in filing the appeal was explained by one of the directors of the assessee, leading to the Tribunal condoning the delay and admitting the appeal for adjudication. The assessment proceedings involved scrutiny under CASS, queries regarding share transactions, F&O losses, and travel expenses, which resulted in additions by the Ld. AO due to non-compliance by the assessee.

The Ld. CIT (A) dismissed the appeal as the assessee failed to provide submissions or documents during the hearing. The appeal before the Tribunal focused on challenging the ex parte nature of the Ld. CIT (A)'s order and requesting a remittal of the matter back for proper consideration of the submissions made by the assessee.

The Tribunal emphasized the powers of the Commissioner (Appeals) under section 250 of the Act, highlighting the need for a reasoned and meritorious order based on a thorough examination of the material on record. It was noted that the Ld. CIT (A) did not provide substantive findings on the submissions, leading to the decision to remit the matter back for a fair and objective assessment.

In conclusion, the Tribunal allowed the appeal for statistical purposes, setting aside the order of the Ld. CIT (A) and directing a fresh consideration of the case with a reasonable opportunity for the assessee to be heard. The decision aimed to ensure a just and comprehensive evaluation of the issues raised during the appeal process.

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