1989 (6) TMI 92 - AT - Income Tax

Tribunal invalidates dismissal of appeals due to non-appearance, orders fair reconsideration

The Tribunal held that the orders of the Commissioner of Income-tax (Appeals) dismissing the appeals solely based on the non-appearance of the assessee ... Appellate Authority, Assessee's Appeal, Dispose Of Issues:1. Dismissal of appeals by CIT (Appeals) due to non-appearance of assessee.2. Consideration of adjournment request and disposal of appeal on merits by Tribunal.3. Analysis of the difference between tax appeal and civil appeal.4. Obligation of the Appellate Assistant Commissioner to dispose of appeal on merits even if the assessee does not appear.Detailed Analysis:1. The appeals were filed by the assessee against orders of the Commissioner of Income-tax (Appeals) dismissing the appeals due to non-appearance of the assessee at the time of hearing. The CIT (Appeals) noted that the assessee did not attend on multiple occasions and concluded that the assessee was not serious in pursuing the appeals. The appeals were dismissed for the assessment years 1977-78 and 1980-81, along with similar orders for other years under different sections. The assessee challenged these dismissals through the appeals.2. Despite the non-appearance of the assessee when the case was called for hearing, a subsequent telegram was received seeking adjournment due to unavoidable circumstances. The Tribunal, after considering the message, decided not to accept the adjournment and proceeded to examine the grounds of appeal for disposal on merits.3. The Tribunal analyzed the difference between tax appeal and civil appeal, citing a judgment by the Hon'ble Madras High Court. It was highlighted that a tax appeal is a continuation process of assessment to adjust the tax liability of the taxpayer, distinct from a civil appeal which involves a controversy over mutual rights and obligations between litigants. The Tribunal emphasized that the appellate authority in tax matters is committed to the assessment process and can enhance the assessment even if the appeal seeks a reduction.4. The Tribunal referred to legal precedents, including a decision by the Hon'ble Calcutta High Court, to establish that once an assessee files an appeal, they cannot withdraw it, and the Appellate Assistant Commissioner must dispose of the appeal on merits. Even if the assessee refuses to appear, the appellate authority is obligated to proceed with the enquiry and can enhance the assessment if under-assessment is found. Therefore, the Tribunal held that the orders of the CIT (Appeals) dismissing the appeals solely based on non-appearance of the assessee were not valid. The CIT (Appeals) was directed to reconsider the appeals, provide a fair opportunity for both sides to be heard, and pass speaking orders for appealability. The appeals by the assessee were treated as allowed for statistical purposes.