ITAT Remands Addition for Fresh Assessment After Setting Aside Ex-Parte Orders:

As per the information available on the Income Tax Department’s Insight Portal, the assessee had reported income of Rs 8,990 in its return, whereas information indicated a receipt of Rs 57,15,604 from the Yamuna Expressway Industrial Development Authority (YEIDA), along with interest-related information concerning HDFC Bank Limited.

The AO reopened the assessment under Section 147 of the Act and issued notices under Section 148 and subsequent statutory notices. As the assessee failed to furnish the required submissions during the assessment proceedings, the AO passed an ex-parte assessment order dated 6 January 2025, making an addition of Rs 57,15,604.

The assessee challenged the assessment before the CIT(A). However, the appeal was dismissed by an ex-parte order dated 27 February 2026. 

The Tribunal examined the rival submissions and the material available on record. It noted that the CIT(A) had dismissed the appeal in the absence of the assessee and written submissions, thereby confirming the ex-parte assessment order. Considering the facts and the assessee’s request for restoration of the matter, the Tribunal held that the orders required to be set aside in the interest of justice.

Accordingly, the Tribunal set aside both the CIT(A)’s order dated 27 February 2026 and the AO’s order dated 6 January 2025. The matter was restored to the file of the AO for a fresh decision in accordance with law after affording a fair opportunity of hearing to the assessee.