Ex parte appellate order set aside where assessee lacked effective hearing; matter remanded for fresh TDS adjudication.

An ex parte appellate order passed without effective participation of the assessee can be set aside where the assessee seeks an opportunity to produce records and substantiate its TDS contentions. The appellate authority's failure to secure adequate participation justified restoring the matter for fresh, reasoned consideration rather than deciding the substantive TDS merits. The dispute was therefore remanded for de novo adjudication before the Assessing Officer, with directions to allow the assessee to present its case and place the relevant material on record.

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Issues: Whether the ex parte appellate order ought to be set aside and the matter remanded for fresh adjudication.

Analysis: The appeal arose from an order upholding a TDS default demand without effective participation by the assessee before the first appellate authority. The assessee sought an opportunity to place old records and make submissions on the disputed TDS issues, while the Revenue urged that the assessee, being a Government department, should comply with its tax obligations. On the record, the appellate order was found to have been passed without adequate participation of the assessee, whereas the underlying default order had dealt with the merits. In these circumstances, the proper course was to restore the matter for reconsideration on a fresh and reasoned basis, with directions to the assessee to produce records and advance its contentions before the Assessing Officer.

Conclusion: The ex parte appellate order was set aside and the matter was remanded to the Assessing Officer for de novo adjudication, with the assessee to be afforded an opportunity to present its case.

Final Conclusion: The dispute was not decided on the substantive TDS merits and was returned for fresh consideration, with the appeal treated as allowed for statistical purposes.

Ratio Decidendi: Where an appellate order is passed without effective participation of the assessee and the assessee seeks a fresh opportunity to substantiate its case, the matter may be restored for de novo adjudication through a reasoned speaking order.

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