Natural justice and reasoned appellate orders require fresh hearing where ex parte disposal ignored section 250(6) compliance.

An ex parte first appellate order was set aside because the assessee was not given a fair opportunity of hearing and the order did not reflect the reasoned consideration required under section 250(6) of the Income-tax Act, 1961. The appellate authority is required to pass a speaking order after examining the material on record; failure to do so breached natural justice. The matter was remitted for de novo adjudication after affording the assessee sufficient opportunity to present its case.

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Issues: Whether the ex parte appellate order deserved to be set aside for breach of natural justice and non-compliance with the duty to pass a reasoned order under section 250(6) of the Income-tax Act, 1961.

Analysis: The assessee was not able to place its case before the first appellate authority, and the appellate order was passed ex parte without considering the material on record in the manner required by section 250(6). In the interest of justice, and to ensure fair opportunity of hearing, the matter was restored for fresh consideration.

Conclusion: The ex parte appellate order was set aside and the matter was remitted to the first appellate authority for de novo adjudication after affording sufficient opportunity of hearing to the assessee.

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