2021 (3) TMI 163 - AT - Income Tax

Tribunal remands appeal for fresh adjudication, emphasizing natural justice principles.

The Income-Tax Appellate Tribunal, Allahabad, allowed the appeal filed by the assessee for statistical purposes, remanding the matter back to the CIT(A) ... Ex-parte appellate order passed by learned CIT(A) - reassessment proceedings - HELD THAT:- Assessee is equally to be blamed for its woes as the assessee did not appear before the learned CIT(A). Now, before us, both the parties have submitted that the appellate order passed by learned CIT(A) be set aside and matter be remanded back to the file of learned CIT(A) for fresh adjudication of the appeal filed by assessee with learned CIT(A). After considering the entire material on record, we are of the considered view that the interest of justice will be served if the appellate order dated 29.11.2016 passed by ld. CIT(A) be set aside and the matter is set aside/restored back to the file of learned CIT(A) for fresh adjudication of all the grounds of appeal raised by assessee in its appeal filed with learned CIT(A). The assessee did not co-operated with learned CIT(A) in the first round of litigation and if in the set aside remand proceedings, if the assessee again did not co-operate, the learned CIT(A) shall be free to decide all the issues raised by assessee, on merits in accordance with law. Issues:Reassessment proceedings initiated by Revenue under Section 147/148 of the Income-tax Act, 1961. Dismissal of the appeal by the learned CIT(A) in an ex-parte order. Challenge of the appellate order by the assessee before the Income-Tax Appellate Tribunal, Allahabad. Request for setting aside the appellate order and remanding the matter back to the learned CIT(A) for fresh adjudication.Analysis:1. Reassessment Proceedings:The appeal before the Appellate Tribunal stemmed from reassessment proceedings initiated by the Revenue under Section 147/148 of the Income-tax Act, 1961. The Assessing Officer had made additions to the returned income of the assessee amounting to Rs. 34,00,000.2. Dismissal of the Appeal by CIT(A):The assessee challenged the additions made by the Assessing Officer by filing an appeal with the learned CIT(A). However, the appeal was dismissed in an ex-parte order dated 29.11.2016, as the assessee did not appear before the learned CIT(A) during the proceedings.3. Appeal before the Tribunal:Aggrieved by the appellate order, the assessee filed a second appeal with the Income-Tax Appellate Tribunal, Allahabad, raising eleven grounds of appeal. The Division Bench of the tribunal conducted a physical hearing and considered the arguments presented by the assessee's counsel.4. Request for Setting Aside the Appellate Order:During the tribunal proceedings, the assessee's counsel requested the setting aside of the appellate order passed by the learned CIT(A) and the restoration of the issues to the CIT(A) for fresh adjudication. The counsel stated that the assessee had not received notices for the appeal hearings, leading to non-appearance.5. Tribunal's Decision:After hearing both parties and examining the material on record, the tribunal observed the failure of the assessee to cooperate with the learned CIT(A) during the initial proceedings. The tribunal decided to set aside the appellate order and remand the matter back to the CIT(A) for fresh adjudication, emphasizing the importance of the assessee's cooperation in the process.6. Outcome:The tribunal allowed the appeal filed by the assessee for statistical purposes, indicating that the matter would be sent back to the learned CIT(A) for denovo adjudication. The tribunal highlighted the need for the CIT(A) to provide adequate opportunities for the assessee to be heard in accordance with the principles of natural justice during the fresh adjudication process.This detailed analysis of the judgment outlines the key issues involved, the sequence of events leading to the appeal, and the tribunal's decision to remand the matter back to the CIT(A) for a fresh adjudication, stressing the importance of the assessee's cooperation in the proceedings.