20-Nov-2025 TACIT LEGAL
In a significant ruling reinforcing the principles of natural justice, the Allahabad High Court has held that the Income Tax Appellate Tribunal (ITAT) cannot dismiss adjournment applications and proceed to pass ex-parte orders without assigning clear and cogent reasons. The Court emphasized that such an approach directly affects the litigant’s right to a fair hearing, which is an essential component of judicial and quasi-judicial proceedings. A Division Bench comprising Justice Saumitra Dayal Singh and Justice Indrajeet Shukla delivered the judgment while hearing an appeal filed under Section 260A of the Income Tax Act, 1961.
Right to Reasonable Hearing is Non-Negotiable
The High Court observed that although expeditious disposal is important, it cannot come at the cost of denying a party their right to a reasonable opportunity of hearing.
The Bench noted:
“While inordinate delays in judicial decision making is not healthy and expeditious disposal of the proceedings is a goal that all Courts, Tribunals and Authorities may pursue, at the same time, they may remain conscious of their non-negotiable commitment to afford reasonable opportunity of hearing to the parties before such judicial decision making is achieved.”
The Court clarified that procedural fairness requires the Tribunal to record adequate reasons before rejecting any adjournment request, especially where such rejection leads to an ex-parte order.
Case Background
The matter concerned appeals filed by the assessee before the ITAT in 2025. The Tribunal listed the appeals twice within a short span of two months. On both occasions, the assessee sought adjournments:
- First adjournment – granted.
- Second adjournment – rejected without assigning reasons, followed by an ex-parte order against the assessee on the same day.
The assessee challenged the order before the High Court on the ground that rejection of the adjournment application without reasons violated principles of natural justice.
High Court’s Findings
The Court held that:
- Even if one adjournment had previously been granted, the assessee was still entitled to a reasoned order for subsequent rejection.
- The Tribunal’s failure to record reasons made the order unsustainable in law.
- Passing an ex-parte order without justification is prejudicial to the interests of the assessee, especially when the matter is finalized on the very date of rejection.
The Bench concluded that the non-recording of reasons amounted to a denial of a fair hearing, thus vitiating the Tribunal’s order.
Appeal Allowed
Holding the ITAT’s approach to be legally flawed, the Allahabad High Court allowed the appeal and set aside the ex-parte order.
Why This Judgment Matters
This ruling is significant for taxpayers and tax practitioners because it reinforces:
- The importance of procedural fairness in ITAT proceedings.
- The requirement of reasoned orders when rejecting adjournments.
- The judiciary’s constant emphasis on natural justice, especially in tax adjudication.
It also serves as a reminder that Tribunals, while pursuing speedy disposal of cases, must safeguard the rights of litigants to ensure transparency and fairness.
Case Details
Case Title: Ashok Kumar Agarwal v. The Assistant Commissioner of Income Tax
Court: High Court of Judicature at Allahabad
Case No.: INCOME TAX APPEAL No. 77 of 2025
Bench: Justice Saumitra Dayal Singh & Justice Indrajeet Shukla
This article cover the legal point whether an exparte order be passed on application for adjournment further you can read here important judgements and legal principles laid down by Hon’ble supreme court of India, this article is posted by Advocate Shivaji Rathore (J&K high court jammu) for more important legal topics stay connected with us, on tacit legal we post on YouTube channel also named as Tacit Legal helpful for Law students newely enrolled Advocate in India and other states, Follow us on Instagram also, Read our articles on important Questions of Law. #tacitlegal visit my website Tacit Legal dot in search on google, this website is made from Hostinger and wordpress follow our latest updates for legal news follow us on YouTube also for young lawyers law students helpful for Advocates, this blog is written by Advocate Shivaji Rathore practicing in Jammu and Kashmir high court and district court at Jammu. The website Tacit Legal is available on Google created with Hostinger and wordpress keep in touch and read our daily articles and reporting for law students and advocates as we provide you important legal information on Tacit Legal.in
Author: Advocate Shivaji Rathore
Founder – Tacit Legal | tacitlegal.in
