ITAT Remands Ex-Parte Appeal for Fresh Adjudication:

The assessee is an individual earning salary income and capital gains, had not filed his return of income under Section 139 of the Income Tax Act, 1961, for Assessment Year 2020–21. Based on information available through the Risk Management System (RMS), the AO issued a notice under Section 148, after which the assessee filed his return on 12 July 2024, declaring total income of Rs 23,38,410.

During the reassessment proceedings, the assessee failed to respond adequately to most notices issued under Section 142(1) and did not comply with the show-cause notice. Consequently, the AO completed the assessment under Sections 143(3) and 147 on the basis of the available material, making additions towards short-term capital gains on the sale of securities, unexplained investments under Section 69, and alleged under-reporting of salary income. The assessee challenged the assessment before the CIT(A) which dismissed the appeal ex parte without adjudicating the grounds on merits. 

The assessee argued before the Tribunal that the appellate order was contrary to Section 250(6) of the Income Tax Act, 1961, and violated the principles of natural justice. It was submitted that the hearing notices had been sent to an email address that the assessee did not regularly access, resulting in his non-participation. The assessee accordingly requested that the matter be remanded to the CIT(A) for fresh consideration.

Considering the facts and the interest of substantive justice, the Tribunal deemed it appropriate to restore the matter to the file of the CIT(A) for fresh adjudication. It directed the appellate authority to provide another opportunity of hearing by issuing notice to the email address to be communicated by the assessee.