2021 (9) TMI 1490 - AT - Income Tax

Tribunal sets aside ex parte order, remits for de novo adjudication to uphold natural justice.

Shri Ganesh G. Alim Versus The Income Tax Officer, Ward-3 (3) (1), Surat

The Tribunal allowed the appeal, setting aside the ex parte order of the ld. CIT(A) and remitting the matter for de novo adjudication to ensure the ... Ex parte order passed by CIT (A) out of assessment order passed by AO u/s 144 r.w.s 143(3) - HELD THAT:- As the assessment was carried out u/s 144 r.w.s 143(3) of the Act and the impugned order passed by the ld. CIT(A), is an ex parte order and non-speaking order, therefore, we do not wish to make any comments on the merits of the grounds raised by the assessee. Assessee could not plead his case successfully before the ld. CIT(A). We note that the ld. CIT(A) did not discuss the assessee’s case on merits based on the material available before him hence it is a violation of principle of natural justice. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore the matter back to the file of Ld. CIT(A) for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. Appeal of the assessee is allowed for statistical purposes. Issues:Appeal against ex parte order of ld. CIT(A) - Violation of natural justice - Remitting the matter back for de novo adjudication.Analysis:The appeal pertains to the Assessment Year 2012-13 and challenges the ex parte order passed by the ld. Commissioner of Income Tax (Appeals)-1, Surat, which arose from an assessment order under sections 144 r.w.s 143(3) of the Income Tax Act, 1961. The appellant was unable to represent their case before the ld. CIT(A) due to non-receipt of hearing notice as they had shifted to a different location. The appellant's counsel argued that both during the assessment stage and appellate proceedings, the appellant could not properly present their case, requesting the matter to be remitted back to the Assessing Officer. The Tribunal noted the ex parte nature of the order and the failure to provide a proper opportunity for the appellant to be heard, citing the principles of natural justice, including the right to be heard and the aim to secure justice.The Tribunal referred to the Hon'ble Supreme Court's decision in M.S. Gill vs The Chief Election Commission, emphasizing the importance of natural justice in administrative proceedings. It was observed that the ld. CIT(A) did not discuss the appellant's case on merits, leading to a violation of the principle of natural justice. In the interest of justice, the Tribunal decided to set aside the order of the ld. CIT(A) and remit the matter back for de novo adjudication. The appellant was directed to contest their stand and the ld. CIT(A) was instructed to pass a speaking order after providing sufficient opportunity for the appellant to be heard. The appeal was treated as allowed for statistical purposes.In conclusion, the Tribunal allowed the appeal for statistical purposes, setting aside the ex parte order of the ld. CIT(A) and remitting the matter back for de novo adjudication to ensure the principles of natural justice are upheld and the appellant is given a fair opportunity to present their case.