Natural justice in appellate proceedings requires a proper hearing before ex parte disposal; the matter was restored for fresh adjudication.

Section 250 of the Income-tax Act requires that appellate proceedings before the Commissioner (Appeals) provide a proper opportunity of hearing, and the principles of natural justice prohibit disposal of an appeal without such opportunity. Where the appeal was decided ex parte without merits adjudication because the assessee did not appear, the Tribunal treated the absence of sufficient hearing as a procedural defect. The ex parte order was set aside and the matter was restored to the Commissioner (Appeals) for fresh disposal after granting a proper and sufficient opportunity of hearing.

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Issues: Whether the ex parte order of the Commissioner (Appeals) was liable to be set aside and the matter remanded for fresh adjudication on account of denial of proper and sufficient opportunity of hearing to the assessee.

Analysis: The assessee had not appeared before the Commissioner (Appeals), who proceeded to dispose of the appeal ex parte. The Tribunal noted that the appeal had not been decided on merits and that section 250 of the Income-tax Act, 1961 contemplates an opportunity of hearing in appellate proceedings before the Commissioner (Appeals). It further held that principles of natural justice require that no appeal be disposed of without giving the party a proper and sufficient opportunity of being heard.

Conclusion: The ex parte appellate order was set aside and the matter was restored to the file of the Commissioner (Appeals) for fresh disposal after granting proper and sufficient opportunity of hearing to the assessee.

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