2018 (7) TMI 1953 - AT - Income Tax

Appellate tribunal overturns ex parte order, grants assessee fresh adjudication for fair defense

Late Dineshchandra A. Patel, L/H Sudhaben Dineshchandra Patel Versus The D.C.I.T., Circle – 3 (3), Ahmedabad

The appellate tribunal set aside the ex parte order of the CIT(A) and restored all issues back for fresh adjudication to provide the assessee with a fair ... CIT(A)' s order exparte in the absence of the assessee - HELD THAT:- A reasonable opportunity is given to the assessee to place its defense before the CIT(A) to enable the First Appellate Authority to pass speaking order after taking cognizance of the merits of the case as may be advanced on behalf of the assessee. Therefore, we consider it appropriate to set aside the order of the CIT(A) and restore all the issues back to the file of the CIT(A) in larger interest of justice with a view to enable the assessee to avail opportunity once more. Appeal of the assessee is allowed for statistical purposes. Issues: Setting aside the order of the CIT(A) and restoring all issues back for fresh adjudication.In the judgment delivered by Shri Pradip Kumar Kedia, the appellate tribunal considered an appeal filed by the assessee against the order of the CIT(A) dated 30.11.2017, related to the assessment order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 for the assessment year 2013-14. The assessee had raised several grounds of appeal challenging the order of the CIT(A). However, upon reviewing the order, it was noted that the CIT(A) had passed the order ex parte in the absence of the assessee. In light of this, the tribunal deemed it appropriate to provide the assessee with a reasonable opportunity to present its defense before the CIT(A) to ensure a fair adjudication of the case. Consequently, the tribunal set aside the order of the CIT(A) and restored all the issues back to the file of the CIT(A) to enable the assessee to have another opportunity to be heard. It was emphasized that the assessee must cooperate fully with the proceedings before the CIT(A), and failure to do so would allow the CIT(A) to conclude the appellate proceedings in accordance with the law. Therefore, the order of the CIT(A) was set aside, and all issues raised in the appeal were restored back to the CIT(A) for fresh adjudication after providing a reasonable opportunity of hearing to the assessee. As a result, the appeal of the assessee was allowed for statistical purposes.