ITAT Remands Ex-Parte Income Tax Appeal for Fresh Adjudication:

The assessee filed an appeal before the Tribunal against the order dated 10 August 2026 passed by the CIT(A) under Section 250 of the Income Tax Act, 1961, for Assessment Year 2024–25. The first appellate authority had passed an ex-parte order after the assessee failed to comply with three hearing notices issued on 1 June 2026, 7 July 2026 and 24 July 2026.

Before the Tribunal, the assessee’s authorised representative submitted that the assessee was a film artist frequently occupied with shooting schedules and had failed to take note of the notices. It was further submitted that the notices had been sent to the email ID of her erstwhile auditor, which had not been updated, leaving her representative unaware of the appellate proceedings. The assessee also argued that the audit report and financial statements furnished before the AO through the e-portal during the assessment proceedings had not been duly considered. Accordingly, she sought another opportunity to substantiate her case.

The Department opposed the appeal, arguing that adequate opportunities had been provided and that there was no violation of the principles of natural justice.

The Tribunal, after hearing both parties and examining the material on record, strongly deprecated the assessee’s lackadaisical approach in failing to respond to statutory notices issued by the first appellate authority. Nevertheless, considering the submissions made on behalf of the assessee and in the interest of justice and fair play, the Tribunal deemed it appropriate to restore the matter to the file of the AO for fresh adjudication in accordance with law.

The AO was directed to afford the assessee a reasonable opportunity of hearing. Consequently, the appeal was allowed for statistical purposes. Since the main appeal had been disposed of, the stay application filed by the assessee was held to be infructuous and dismissed.