Natural justice in tax appeals led to remand after an ex parte appellate order was passed without hearing the assessee.

An ex parte first appellate order was set aside because the assessee had not been afforded a proper opportunity of hearing before the appeal was decided on a TDS default demand under the Income-tax Act, 1961. The ITAT held that, in the interest of substantial justice, the matter required reconsideration by the first appellate authority on notice and after hearing the assessee. The case was remanded to the Commissioner (Appeals) for fresh adjudication on merits.

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Issues: Whether the ex parte appellate order deserved to be set aside and the matter remanded for fresh adjudication after affording the assessee a reasonable opportunity of being heard.

Analysis: The appellate order had been passed without any response from the assessee despite notices, and it decided the first appeal ex parte without going into the merits. In the interest of substantial justice, and to ensure that the assessee is heard before a decision on the TDS default demand under the Income-tax Act, 1961, the matter required reconsideration by the first appellate authority.

Conclusion: The ex parte appellate order was set aside and the matter was remanded to the Commissioner (Appeals) for fresh decision after granting reasonable opportunity of hearing to the assessee.

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