ITAT Sets Aside Ex-Parte CIT(A) Order After Mining Contractor Seeks Fresh Hearing, Directs Reconsideration of Tax Disallowances:

The Income Tax Appellate Tribunal (ITAT), Jaipur Bench, has set aside an ex-parte order passed by the Commissioner of Income Tax (Appeals) and directed the appellate authority to reconsider the case of Vinod Kumar Jhajharia for the assessment year 2016-17. The Tribunal ruled that the assessee should be given one more opportunity to present the necessary documents and explain his case on merits.

The assessee, an individual engaged in mining contracting, had filed his income tax return on October 17, 2016, declaring a total income of Rs. 20.64 lakh. During scrutiny assessment, the Assessing Officer made several disallowances, including those relating to TCS interest, machinery repairs, petrol and diesel expenses, and forfeiture of tender security. Following these additions, the assessee’s total assessed income was increased to Rs. 96.60 lakh.

Aggrieved by the assessment order, the assessee approached the Commissioner of Income Tax (Appeals). However, the appellate authority dismissed the appeal for non-prosecution after the assessee failed to submit written arguments despite being given three hearing opportunities on June 20, July 15 and August 5, 2025. The assessee had sought adjournments on these occasions.

Before the ITAT, the assessee’s counsel argued that the three hearing opportunities had been scheduled within a period of around 45 days. The counsel submitted that the assessee was now prepared to furnish all the necessary details and requested that the matter be sent back to the CIT(A) for fresh consideration. The Departmental Representative supported the orders passed by the lower authorities.

After considering the submissions, the Tribunal held that the matter should be restored to the file of the CIT(A) to provide the assessee with one more opportunity of hearing. It directed the appellate authority to examine the relevant documents and pass a fresh order in accordance with the law.

The Tribunal also made it clear that the assessee must cooperate with the appellate proceedings and submit all required documents so that the appeal can be decided on merits.

Accordingly, the ITAT allowed the assessee’s appeal for statistical purposes, without deciding the underlying tax disputes on merits.