Natural justice in appellate proceedings requires hearing the assessee before passing an ex parte order

The ex parte appellate order was unsustainable because the record showed that the assessee had filed replies and written submissions on multiple dates, so the finding that no effective hearing was given could not stand. The Commissioner (Appeals) was required to decide the appeal after hearing the assessee and to pass a reasoned order in compliance with section 250(6) of the Income-tax Act, 1961. For breach of natural justice and defective appellate adjudication, the order was set aside and the matter was remitted for fresh disposal after hearing the assessee.

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Issues: Whether the appellate order of the Commissioner (Appeals) could be sustained when the assessee had filed responses and written submissions but was proceeded against ex parte, resulting in a violation of natural justice.

Analysis: The record showed that the assessee had uploaded replies and written submissions before the appellate authority on multiple dates. In view of these materials, the finding that the assessee had not availed the opportunity of hearing was not sustainable. The appellate order did not reflect proper compliance with the duty to decide the appeal after hearing the assessee and in accordance with section 250(6) of the Income-tax Act, 1961.

Conclusion: The ex parte appellate order was unsustainable for breach of natural justice and was set aside, with the appeal remitted to the Commissioner (Appeals) for fresh adjudication after hearing the assessee.

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