Non-service of hearing notice invalidated dismissal of appeals, requiring fresh notice and merits-based disposal.

Non-service of hearing notices at the address stated in the memorandum of appeal meant the assessee's absence before the appellate authority could not be treated as a valid basis to regard the appeals as incompetent under section 249(1) of the Income-tax Act, 1961. On those facts, the proper course was to issue fresh notice and decide the appeals on merits after hearing both sides. The order treating the appeals as incompetent was set aside and the matter was remanded for fresh disposal on merits.

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Issues: Whether the appeals were incompetent for want of proper particulars or service of notice, and whether the matter should be restored to the appellate authority for disposal on merits.

Analysis: The assessee's non-appearance before the appellate authority was attributable to non-service of the hearing notices sent to the address stated in the memorandum of appeal. On those facts, the conclusion that the appeal particulars were not correctly filed under section 249(1) of the Income-tax Act, 1961 was unsustainable. The proper course, where the assessee was not effectively served, was to issue a fresh notice and decide the appeals on merits after hearing both sides.

Conclusion: The order treating the appeals as incompetent was set aside and the matter was remanded to the appellate authority for fresh notice and disposal on merits.

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