Restoration for fresh adjudication where factual inquiry is necessary; limited bank-account release granted, stay dismissed.

Where ex parte proceedings had concluded but factual inquiry and evidence remained necessary, the note advises restoring the matter to the Assessing Officer for fresh adjudication to secure substantial justice; limited interim relief is prescribed by directing release of a specific bank account to enable business operations while other attachments continue; the stay application is treated as infructuous and dismissed; costs are to be imposed on the taxpayer for non-cooperation; the appeal is recorded as allowed for statistical purposes.

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Issues: (i) Whether the appeal should be restored to the Assessing Officer for fresh adjudication despite ex parte assessment and first appellate proceedings; (ii) Whether attachment of bank accounts should be released pending fresh adjudication; (iii) Whether the stay application for suspension of recovery and release of bank accounts should be granted.

Issue (i): Whether the appeal should be restored to the Assessing Officer for fresh adjudication.

Analysis: The proceedings below were completed ex parte due to the assessee's repeated non-compliance, but the matters involve examination of facts and supporting evidence. The Tribunal considered the need for factual inquiry and the interest of substantial justice in deciding the appropriate course.

Conclusion: The appeal is restored to the file of the Assessing Officer for fresh adjudication; the assessee is directed to cooperate and furnish necessary details and evidence.

Issue (ii): Whether attachment of bank accounts should be released pending fresh adjudication.

Analysis: The outstanding demand includes penalty under Section 270A and the Revenue objected to releasing all attached accounts. The Tribunal balanced the impact on business operations against the existence of penalty liability and the need to protect the revenue.

Conclusion: The attachment of HDFC Bank Account No. 50200069844496 is directed to be released to enable business operations; attachment of other bank accounts shall continue subject to further lawful orders by the Assessing Officer.

Issue (iii): Whether the stay application seeking stay of recovery and lifting of bank attachments should be allowed.

Analysis: The principal appeal has been restored for fresh adjudication, which affects the relevance of the stay application; the Tribunal considered the procedural effect of restoration on pending interlocutory reliefs.

Conclusion: The stay application is dismissed as infructuous.

Final Conclusion: The Tribunal restored the matter to the Assessing Officer for fresh adjudication, granted limited interim relief by directing release of one bank account to enable business operations, imposed costs on the assessee for non-cooperation, and dismissed the stay application as infructuous; the appeal is allowed for statistical purposes.

Ratio Decidendi: Where factual examination and evidence are necessary despite ex parte proceedings, the Tribunal may restore the matter to the Assessing Officer for fresh adjudication in the interest of substantial justice while granting limited interim relief and imposing costs for non-cooperation.

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