2025 (10) TMI 309

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....1961 (for short 'the Act') in pursuant to an ex-parte proceedings, computation sheet and demand notice dated 20.03.2022.. 2. Heard the learned counsel for the petitioner and learned counsel for the respondents. 3. It would suffice if the narration would commence from an ex-parte assessment order passed by respondent No.2 on 20.03.2022 and a subsequent penalty order on 23.09.2022 under Section 271B of the Act along with the demand notice and computation sheet. It is then the petitioner is said to have come to know of the proceedings that have been initiated against the petitioner as the order and demand notice were said to be received by e-mail. 3. Learned counsel appearing for the petitioner submits that the firm is engaged....

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....red as the case would be. Learned counsel would seek to place reliance upon the judgment rendered by the Division Bench of High Court of Judicature at Bombay in the case of Vijay Shrinivasrao Kulkarni (Deceased) vs. Income Tax Appellate Tribunal and others in W.P. No. 17572 of 2024. 6. The afore narrated facts are not in dispute. The averment in the petition is that the petitioner had shut shop in the year 2018 and was not aware of the re-assessment proceedings being taken up for the assessment year 2017-18 and orders passed thereon. The Assessing Officer himself notices that the email was not found. Therefore, to what email service has been effected is still a lurking doubt. The orders passed are now made known to the petitioner. The pr....

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....tted that the matter was required to be remanded to the NFAC, on the ground that the order of the NFAC was an ex-parte order, as it was passed in absence of a hearing being granted to the petitioner/his representative. The petitioner's CA also filed an affidavit in this regard. The ITAT rejected the petitioner's prayer to remand the matter to NFAC and insisted on hearing the appeal on merits. The petitioner's advocate then requested for a short adjournment, so that a paper book could be submitted. However, such request was denied. The petitioner's advocate then requested to the ITAT to grant one day's time to submit such paper book and to take up appeal for hearing on merits on the next date. Such request was also reject....

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.... that Article 14 guarantees a right of hearing to a person who is adversely affected by an administrative order. The principle of audi alteram partem is a part of Article 14 of the Constitution of India. In light of such decision, the petitioner ought to have been granted an opportunity of being heard which, partakes the characteristic of the fundamental right under Article 14 of the Constitution of India. 24. In the facts and circumstances of the given case, it will be apposite to refer to a decision of the Supreme Court in the case of Commissioner of Income Tax Madras v. Chenniyappa Mudiliar 1969 1 SCC 591. The Supreme Court in interpreting the section 33(4) of the Income Tax Act, 1922 has held that the appellate tribunal was bou....