ITAT Jodhpur: Order Set Aside for Lack of Natural Justice. Fairness & 'Audi Alteram Partem' Principle Emphasized

The Appellate Tribunal ITAT Jodhpur set aside the order passed by the Ld. CIT(A) due to non-compliance with principles of natural justice. Emphasizing the right to be heard, the Tribunal referenced the Latin maxim "Audi Alteram Partem" and stressed fairness in legal proceedings. Citing 'Maneka Gandhi vs. The Union of India', the Tribunal highlighted the importance of fair procedures. The matter was remanded for fresh consideration with directions for the Assessee to cooperate in future proceedings. Appeals were allowed for statistical purposes, contingent on the Assessee's cooperation.

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Issues: Compliance with principles of natural justice in appellate proceedings.

In the judgment delivered by the Appellate Tribunal ITAT Jodhpur, the appeal was filed by the Assessee against an order passed by the Ld. CIT(A)-Ajmer affirming the order passed under section 154 of the Income Tax Act, 1961 by the DCIT, Central Circle-1, Udaipur. The Tribunal noted that the Ld. CIT(A) had fixed the appellant proceedings on various dates, but it was observed that the assessee did not attend the proceedings nor filed any written submission. The Tribunal highlighted the importance of the principles of natural justice, emphasizing that every person has the right to be heard when allegations are made against them. The Latin maxim "Audi Alteram Partem" meaning 'hear the other side' was referenced, stressing the need for fairness, reasonableness, equality, and equity in legal proceedings. The Tribunal pointed out that failure to provide a reasonable opportunity of being heard renders an order invalid and liable to be set aside. Citing the landmark case of 'Maneka Gandhi vs. The Union of India', the Tribunal reiterated the importance of fair procedures and equal treatment under Articles 14 and 21 of the Constitution. Therefore, in the absence of compliance with the principles of natural justice in the instant case, the Tribunal set aside the order passed by the Ld. CIT(A) and remanded the matter for fresh consideration, emphasizing the need to afford proper opportunities of being heard to the assessee.

The Tribunal directed the Assessee to fully cooperate and participate in the appellate proceedings before the Ld. CIT(A) in the future. It was emphasized that failure to cooperate would result in the assessee not being granted any leniency. Ultimately, the Tribunal allowed the appeals filed by the Assessee for statistical purposes, indicating that the decision was made in the open court on a specific date.

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