Orissa High Court Grants Fresh Hearing To Taxpayer With Neurological Illness, Quashes Ex Parte Order

The Orissa High Court on 2 February set aside an ex parte assessment order against Sri Susil Nath, the taxpayer, as he could not participate due to neurological illness.

A Division Bench of Chief Justice Harish Tandon and Justice Murahari Sri Raman noted:

“As it appears from the record that the invoices along with vehicle particulars issued by the Government Authority could not be placed before the said Authority in view of the circumstances beyond the control of the petitioner.”

The petition challenged an assessment under Sections 143(3) read with 144-B of the Income Tax Act, 1961, dated 1 December 2025, which pertains to scrutiny of returns selected through the risk-based Computer-Assisted Scrutiny Selection (CASS) system, allowing the Assessing Officer to verify income and deductions while giving the taxpayer an opportunity to be heard.

Scrutiny was initiated through CASS on purchase of high-value motor vehicles. The petitioner submitted that medical advice requiring rest from 1 July to 3 December 2025, due to neurological illness, prevented his participation.

The Department opposed the plea, citing alternative remedy.

The Court noted that the medical certificate from Sub-Divisional Hospital, Talcher, could not be impeached and that relevant documents could not be produced due to circumstances beyond the petitioner's control.

Observing that the matter ought to be adjudicated on merits by the authority concerned, the Court stated that “he should be granted one opportunity to present his case before the authority concerned.”

Accordingly, the Bench set aside the order and directed fresh adjudication on merits, without expressing any opinion. It directed the petitioner to appear before the Assessing Officer on or before 16 February 2026 with supporting documents.