ITAT grants Assessee's appeal for fresh decision, emphasizing due process and fair treatment

The ITAT allowed the Assessee's appeal for statistical purposes only, remanding the case back to the AO for a fresh decision. The Assessee was granted another opportunity for a hearing due to the lack of a fair chance to present their case before the CIT(A) and the unavoidable circumstances, including the illness of the Chairman affecting representation. The restoration was primarily for procedural and fairness considerations, emphasizing the importance of due process and fair treatment in tax proceedings.

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Issues:
1. Opportunity for hearing not provided by CIT(A)
2. Ex-parte assessment order passed by AO
3. Non-compliance with notices
4. Illness of Chairman affecting representation
5. Restoration of the case to AO for de novo decision

Analysis:
1. The appeal was filed by the Assessee due to the lack of further opportunity for a hearing before the CIT(A) based on the nature of work and illness of the Chairman of the Society. The CIT(A) had dismissed the appeal without providing additional hearing opportunities, leading to the appeal before the ITAT.

2. The impugned assessment order under section 144 of the IT Act was passed by the AO due to non-compliance with notices by the Assessee, a cooperative society managing laborers. The AO proceeded ex-parte as the notices were not attended to, and the CIT(A) upheld the AO's decision. The Assessee cited unavoidable circumstances, including the illness of the Chairman, for non-representation.

3. The Chairman of the Society submitted a letter explaining the reasons for non-appearance before Revenue Authorities, attributing it to illness. The Chairman requested another opportunity to present the case before the AO, emphasizing the cooperative nature of the society's work and the impact of the illness on providing necessary information.

4. The ITAT, after considering the circumstances, decided to restore the case to the AO for a de novo decision, emphasizing the importance of providing the Assessee with a fair opportunity for a hearing. The Assessee was directed to appear before the AO within 30 days and assist in finalizing the appeal promptly. The restoration was for de novo adjudication, allowing the Assessee another chance to present their case.

5. Ultimately, the ITAT allowed the appeal of the Assessee for statistical purposes only, indicating that the restoration was primarily for procedural and fairness considerations rather than a substantive change in the decision. The case was remanded back to the AO for a fresh decision in accordance with the law, ensuring due process and fair treatment for the Assessee.

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