ITAT Remands Ex-Parte Assessment for Fresh Adjudication :

The assessee is Dhankalash Distributors Private Limited who filed an appeal against the order dated 12 December 2025 passed by the CIT(A) under Section 250 of the Income Tax Act, 1961, for Assessment Year 2023–24. The AO had passed an assessment order dated 20 March 2025 under Section 143(3) read with Section 144B of the Act, making certain additions. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A), which was dismissed.

Before the Tribunal, the assessee argued that both the AO and the CIT(A) had passed ex-parte orders and that the CIT(A) had failed to adjudicate the grounds of appeal on merits, thereby violating the principles of natural justice. The Departmental Representative opposed the appeal, submitting that the assessee had repeatedly failed to appear before the lower authorities and that the orders had been passed in accordance with law.

The Tribunal observed that both the assessment order and the order of the CIT(A) had been passed ex parte, as the assessee had not participated in the proceedings before either authority. It further noted that the CIT(A) had not adjudicated all the grounds of appeal on their merits.

Considering these circumstances and in the interest of justice, the Tribunal deemed it appropriate to restore the matter to the file of the AO for fresh assessment. The AO was directed to provide the assessee an opportunity of being heard before passing a fresh assessment order in accordance with law. Accordingly, the appeal was partly allowed for statistical purposes.