Topic

costs for procedural default

1 articleLatest March 2026
Section 144 IT Act | Deliberate Non-Cooperation in Assessment Proceedings Does Not Bar De-Novo Hearing: ITAT Ahmedabad Imposes Costs for Natural Justice Violation
Case Law Analysis
|Income Tax Appellate Tribunal

Section 144 IT Act | Deliberate Non-Cooperation in Assessment Proceedings Does Not Bar De-Novo Hearing: ITAT Ahmedabad Imposes Costs for Natural Justice Violation

ITAT Ahmedabad ruled that an assessee's non-participation in assessment proceedings does not forfeit the right to a fresh hearing, upholding natural justice principles. However, the Tribunal imposed costs for the assessee's procedural lapse, balancing fairness with accountability. The decision reinforces that ex-parte assessments under Section 144 IT Act can be set aside if the assessee's default was not willful or contumacious.