Tribunal restores Revenue's appeal for merits hearing after acknowledging procedural errors. Fair hearing emphasized.

The Tribunal allowed the Revenue's Miscellaneous Application, acknowledging procedural errors and directing the restoration of the Revenue's appeal for a merits-based hearing. The Tribunal emphasized the importance of a fair hearing, compliance with natural justice principles, and consideration of relevant Board circulars. The order was issued on September 28, 2020.

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Issues Involved:
1. Dismissal of Revenue's appeal as not pressed/withdrawn.
2. Applicability of Board Circular No. 3/2018, specifically para 10(c).
3. Provision of proper opportunity for hearing.
4. Consideration of material on record.
5. Legal validity of Tribunal's order dismissing appeals en masse.
6. Restoration of appeals for hearing on merits.

Detailed Analysis:

1. Dismissal of Revenue's appeal as not pressed/withdrawn:
The Revenue filed a Miscellaneous Application (MA) challenging the Tribunal's order dated 23/08/2019, which dismissed its appeal as not pressed or withdrawn under section 268A of the Income-tax Act, 1961. The Revenue argued that its appeal was excepted under para 10(c) of Board Circular No. 3/2018, as indicated in the Authorization Memo dated 15/05/2019.

2. Applicability of Board Circular No. 3/2018, specifically para 10(c):
The Tribunal noted that the Revenue's appeal was filed despite being a low tax-effect matter because it was covered under para 10(c) of Circular No. 3/2018, which pertains to cases where a revenue audit objection is accepted by the Department. The Authorization Memo dated 30/10/2018 explicitly mentioned this exception, justifying the filing of the appeal despite the low tax-effect.

3. Provision of proper opportunity for hearing:
The Tribunal acknowledged that the appeals were dismissed en masse without affording the Revenue a proper opportunity to raise objections. The hearing process was expedited, and notices were not adequately sent to the parties, violating the principles of natural justice. The Tribunal emphasized that a fair hearing demands adequate notice, typically four weeks, which was not provided in this case.

4. Consideration of material on record:
The Tribunal noted that the Authorization Memo, which formed part of the Tribunal's record, clearly stated the basis for filing the appeal under para 10(c) of Circular No. 3/2018. The Tribunal was obliged to consider this material on record and verify the applicability of the exception before dismissing the appeal.

5. Legal validity of Tribunal's order dismissing appeals en masse:
The Tribunal's order dismissing 84 appeals by the Revenue and 12 cross-objections (COs) by the assessees was found to be legally infirm due to the lack of proper hearing and consideration of the material on record. The Tribunal provided liberty to the parties to move for restoration of appeals or COs if they were wrongly dismissed under section 268A.

6. Restoration of appeals for hearing on merits:
The Tribunal concluded that the Revenue's applications were admissible and directed the restoration of the Revenue's appeal for being heard and decided on merits. The Tribunal emphasized that the dismissal of the appeals was a mistake manifest on record, and the Revenue's applications could not be ousted at the threshold on the ground that no objection was raised at the time of hearing.

Conclusion:
In summary, the Tribunal allowed the Revenue's Miscellaneous Application, recognizing the procedural lapses and the need for a proper hearing. The Tribunal directed the restoration of the Revenue's appeal for a merits-based hearing, ensuring compliance with the principles of natural justice and the relevant Board circulars. The order was pronounced on September 28, 2020.

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