2020 (3) TMI 598 - AT - Income Tax

Tribunal overturns ex parte orders, emphasizes fair representation & due process for assessees

The Tribunal allowed all six appeals against ex parte orders by the Commissioner of Income Tax (Appeals) for the Assessment Year 2012-13. Despite the ... Ex parte order of CIT(A) - providing proper opportunity to the assessee - assessee in default - HELD THAT:- Orders were passed ex parte as the assessees were not represented before the Ld. First Appellate Authority. In all the six appeals the assesses have challenged the action of the Ld. Commissioner of Income Tax (Appeals) in not affording a proper opportunity to the assessee and in passing an ex parte order. Although, we do note that the assessee have been most casual in their approach and were not present before the Ld. Commissioner of Income Tax (Appeals) and have also chosen not to be represented before this Tribunal today, in the interest of substantial justice, we deem it fit to restore these appeals to the file of the Ld. Commissioner of Income Tax (Appeals) with the direction to adjudicate the appeals of the assessees on merits after giving proper opportunity to the assessees to present their cases. It is so directed accordingly. We also direct the assessees to comply with the notices issued by the office of the Ld. First appellate authority and fully cooperate in the first appellate proceedings when called upon to do so failing which the Ld. First appellate authority shall be at liberty to proceed ex parte qua the assessees and adjudicate these appeals on merits in accordance with law. Issues Involved:Appeals against ex parte orders passed by the Commissioner of Income Tax (Appeals) for various grounds including lack of proper opportunity, confirmation of actions by assessing officers, and contrary to principles of natural justice.Analysis:1. The six appeals were filed against separate impugned orders dated 20.2.2017 and 21.02.2017 by the Ld. Commissioner of Income Tax (Appeals) for the Assessment Year 2012-13. The grounds of appeal in each case included issues such as passing of ex parte orders, lack of proper opportunity provided to the assessee, confirmation of actions by assessing officers, and contrary to principles of natural justice.2. Upon hearing, it was noted that the assessees did not appear before the Ld. Commissioner of Income Tax (Appeals) or the Tribunal, and no adjournment applications were received. The Ld. Sr. DR argued that the assessees had nothing substantial to submit. The orders of the Ld. First Appellate Authority were passed ex parte due to the absence of the assessees. Despite the casual approach of the assessees, in the interest of substantial justice, the Tribunal decided to restore the appeals to the file of the Ld. Commissioner of Income Tax (Appeals) with directions to adjudicate the appeals on merits after providing proper opportunity to the assessees.3. The Tribunal directed the assessees to comply with notices issued by the Ld. First Appellate Authority and fully cooperate in the proceedings. Failure to do so would result in the Ld. First Appellate Authority proceeding ex parte and adjudicating the appeals on merits in accordance with the law. Ultimately, all six appeals were allowed for statistical purposes, emphasizing the importance of providing a fair opportunity to the assessees in the appellate proceedings.Conclusion:The judgment highlighted the significance of adherence to principles of natural justice, fair opportunity, and proper representation in appellate proceedings. Despite the assessees' absence, the Tribunal emphasized the need for due process and directed the Ld. Commissioner of Income Tax (Appeals) to re-examine the appeals on their merits after ensuring the assessees' participation.