ITAT Mumbai Sets Aside Ex-Parte Order in Rajesh B. Jain Case

The Mumbai Bench “B” of the Income Tax Appellate Tribunal delivered its order on 23 February 2026 in ITA No. 2050/MUM/2024 for Assessment Year 2015–16. The appeal was fi led by Rajesh B. Jain, as legal heir of Bhanwarlal Jain, against the order of the Commissioner of Income-tax (Appeals) dated 12 March 2024.

Issue: Alleged Denial of Natural Justice

The primary ground raised by the assessee was that the CIT(A) had passed an ex-parte order without considering an adjournment application dated 09 February 2024. It was argued that this oversight resulted in denial of an effective opportunity of hearing and violated principles of natural justice. The Revenue supported the order, stating that multiple opportunities had already been granted and the assessee failed to appear.

Upon reviewing the record, the Tribunal noted that the specific contention regarding the overlooked adjournment request remained uncontroverted. It emphasized that the “right to be heard” is a substantive safeguard and not a mere procedural formality.

Tribunal’s Decision

The ITAT held that overlooking a formal adjournment application amounts to a technical breach of natural justice. To ensure fairness, the Tribunal set aside the impugned order and restored the matter to the fi le of the CIT(A) for fresh adjudication after granting a reasonable opportunity of hearing. As Ground No. 1 was allowed on this procedural issue, the remaining grounds relating to reopening under Section 147, addition of alleged commission income, reliance on digital evidence, and other factual disputes were treated as academic at this stage.

The appeal was accordingly allowed for statistical purposes.