2024 (3) TMI 1525 - AT - Income Tax

Natural Justice: ex parte appellate order set aside and remitted for fresh adjudication after giving the assessee hearing.

The Tribunal held that the ex-parte appellate order must be set aside because the assessee was not afforded a reasonable opportunity to be heard and key ... Ex-parte order - denial of principles of natural justice - Failure to afford reasonable opportunity of being heard HELD THAT: - The Tribunal found that the order of the Ld. CIT(A) was rendered ex parte and that the assessee had sought adjournment and drawn the attention of the appellate authority to outstanding material (including DVO back material) which it sought to place before the authority. Tribunal accepted the assessee's contention that, in the circumstances, principles of natural justice required that the assessee be given another opportunity to represent its case. Tribunal left all substantive contentions open for fresh consideration by the Ld. CIT(A) and recorded that the assessee would be at liberty to raise all pleaded grounds and any other legal pleas it wished to press. The Tribunal therefore set aside the impugned order for de novo adjudication by the Ld. CIT(A) after providing due and reasonable opportunity to the assessee to be heard. [Paras 6] Final Conclusion: Assessee appeal is allowed for statistical purposes and the impugned ex parte appellate order is set aside for fresh adjudication by the CIT(A) after giving the assessee a reasonable opportunity to be heard. Issues: Whether the ex-parte appellate order dated 19/02/2024 passed by the CIT(A) should be set aside and the matter remitted for fresh adjudication after providing reasonable opportunity of hearing to the assessee.Analysis: The Tribunal examined the record and noted that the impugned order was passed ex-parte. The assessee had sought adjournment and contended that key material (including responses and back material relating to the DVO report) was awaited and that adequate opportunity to represent its case was not afforded. The Revenue did not contend against remand for fresh adjudication after providing opportunity. Applying principles of natural justice and having regard to the absence of a hearing on contentions the assessee sought to raise, the Tribunal found it appropriate that the matter be decided afresh by the CIT(A) after giving due and reasonable opportunity to the assessee to present its case and evidence.Conclusion: The impugned ex-parte order is set aside and the matter is remitted to the file of the CIT(A) for fresh adjudication after affording the assessee due and reasonable opportunity of being heard; the appeal is allowed for statistical purposes in favour of the assessee.