Appeal Restored for Fresh Adjudication with Emphasis on Due Process and Fair Hearing

The Tribunal set aside the impugned order and restored the appeal to the Commissioner of Income Tax (Appeals) for fresh adjudication. The assessee was directed to cooperate in the proceedings, respond to notices promptly, and provide a valid Email ID for service of notices. The appeal was allowed for statistical purposes, highlighting the significance of due process and fair hearing in tax cases.

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Issues:
1. Appeal against the order of Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, Delhi for assessment year 2010-11.
2. Validity of notice issued under section 148 of the Income Tax Act, 1961.
3. Failure of the assessee to respond to notices served by the First Appellate Authority.

Analysis:
1. The appeal was filed against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2010-11. The appellant contended that the impugned order was passed in ex-parte proceedings by the First Appellate Authority. The appellant's representative argued that the notices sent by the authority were not received by the assessee, leading to the inability to make submissions. The CIT(A) confirmed the addition made under section 68 of the Income Tax Act and rejected the grounds raised by the assessee. The appellant requested the appeal to be restored to the CIT(A) for proper adjudication.

2. The department's representative defended the impugned order, stating that multiple notices were sent to the assessee through ITBA, but the assessee failed to comply. The department referred to the details of notices issued and hearing dates mentioned in the order. The department requested the dismissal of the appeal and the upholding of the impugned order.

3. Upon hearing both sides, it was observed that the First Appellate Authority had issued notices of hearing to the assessee on five occasions through ITBA, spanning from January 21, 2021, to June 7, 2022. The assessee did not respond to any of these notices. While the assessee claimed non-receipt of notices, the Tribunal decided to set aside the impugned order and restore the appeal to the CIT(A) for fresh adjudication, ensuring the assessee is given a fair opportunity to present their case.

4. The Tribunal directed the assessee to cooperate in the First Appellate Proceeding, make submissions within the specified time, and respond to the notices issued by the CIT(A) promptly. Additionally, the assessee was advised to provide a valid Email ID for service of notices. Consequently, the impugned order was set aside, and the appeal of the assessee was allowed for statistical purposes, emphasizing the importance of due process and fair hearing in tax matters.

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