Reasonable opportunity and speaking order duties require ex parte appellate orders to be set aside for fresh adjudication.

Ex parte first appellate orders are unsustainable where repeated notices are issued with insufficient time to respond and the assessee is denied a real and reasonable opportunity of hearing. The appellate authority must also pass a speaking order after considering the material on record; disposal without reasoned adjudication does not satisfy the duty to give reasons under section 250(6). On both grounds, the impugned orders were set aside and the matters restored for de novo consideration and fresh speaking orders in accordance with law.

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Issues: (i) Whether the first appellate orders were vitiated for denial of a real and reasonable opportunity of hearing; (ii) Whether the orders complied with the requirement of a speaking order under section 250(6) of the Income-tax Act, 1961.

Issue (i): Whether the first appellate orders were vitiated for denial of a real and reasonable opportunity of hearing.

Analysis: The appellate notices were issued repeatedly with short intervals and with insufficient time for compliance. The hearing dates were common for all connected matters, and the appeals were decided ex parte when the assessees did not effectively respond. Such a procedure did not provide a real, reasonable, and effective opportunity to present the case.

Conclusion: The issue was decided in favour of the assessee, and the ex parte disposal was held unsustainable for want of reasonable opportunity.

Issue (ii): Whether the orders complied with the requirement of a speaking order under section 250(6) of the Income-tax Act, 1961.

Analysis: The first appellate authority was required to pass a reasoned order after considering the material on record. Since the appeals were disposed of without due consideration of the material and without a proper reasoned adjudication, the statutory duty under section 250(6) was not satisfied.

Conclusion: The issue was decided in favour of the assessee, and the impugned orders were set aside for fresh adjudication.

Final Conclusion: The appeals were restored to the first appellate authority for de novo consideration and fresh speaking orders in accordance with law.

Ratio Decidendi: An ex parte appellate order passed without a real and reasonable opportunity of hearing and without compliance with the duty to render a reasoned decision under section 250(6) cannot be sustained and must be set aside for fresh adjudication.

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