2014 (8) TMI 953 - AT - Income Tax

Appellate Tribunal emphasizes natural justice, remits case for fair hearing, sets aside CIT(A)'s order

Smt. Jaya Jain, Hyderabad Versus ITO Ward-8(2), Hyderabad

Smt. Jaya Jain, Hyderabad Versus ITO Ward-8(2), Hyderabad - TMI Issues:1. Dismissal of assessee's appeal by CIT(A) in limini due to alleged delay in filing the appeal.Analysis:The appeal before the Appellate Tribunal ITAT Hyderabad was directed against the order of CIT(A)-III, Hyderabad dismissing the assessee's appeal pertaining to the assessment year 2009-10 in limini. The assessing officer completed the assessment under section 144 of the Income-tax Act by making additions to the total income declared by the assessee, resulting in a total income of Rs. 27,21,670. The CIT(A) dismissed the appeal ex-parte in limini on the grounds of delay in filing the appeal. The CIT(A) noted discrepancies in the date of receipt mentioned by the assessee and the actual dispatch date of the assessment order, concluding that the appeal was filed beyond the prescribed time without any petition for condoning the delay.The Legal Representative of the assessee argued that the original assessment order and demand notice were never received by the assessee, and the appeal was filed promptly upon receiving the order on 28.5.2012. The contention was that there was no delay in filing the appeal, and the CIT(A) erred in dismissing the appeal without giving the assessee an opportunity to explain the circumstances. The Departmental Representative relied on the order of the CIT(A.The Appellate Tribunal observed that the CIT(A) had dismissed the appeal without providing a fair opportunity for the assessee to explain the alleged delay in filing the appeal. The Tribunal found that the CIT(A) had not justified his conclusion regarding the dispatch and service date of the assessment order. Therefore, the Tribunal held that the order passed by the CIT(A) violated the rules of natural justice and remitted the matter back to the CIT(A) for reconsideration after affording a fair opportunity of being heard to the assessee. The Tribunal directed the CIT(A) to hear the appeal on its merits if it was found that the assessment order was served to the assessee in accordance with statutory provisions.In conclusion, the Appellate Tribunal allowed the assessee's appeal for statistical purposes, setting aside the order of the CIT(A) and emphasizing the importance of adhering to the principles of natural justice in such matters.