Appeal Allowed: Tribunal Sets Aside Ex-Parte Order, Recognizes Natural Justice Breach, Grants Fresh Hearing.

The Tribunal allowed the appeal for statistical purposes, setting aside the CIT(A)'s ex-parte order due to lack of proper hearing and non-compliance with principles of natural justice. The Tribunal condoned the one-day delay in filing the appeal, citing sufficient cause, and directed a fresh decision with proper notice to the assessee.

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Issues: Appeal against ex-parte order, delay in filing appeal, principles of natural justice, addition of cash deposits, condonation of delay

The judgment deals with the assessee's appeal against an ex-parte order for the assessment year 2011-12. The assessee contended that the order passed by the Commissioner of Income Tax (Appeals) was arbitrary and unjustified as it was ex-parte without proper opportunity of hearing, against the principles of natural justice. The appeal raised concerns about the dismissal of the appeal without discussing merits, alleged non-compliance, and upholding additions on cash deposits and interest credited in the bank account. Additionally, there was a delay of one day in filing the appeal before the Tribunal, for which the assessee sought condonation, citing reasons for the delay.

The Tribunal examined the reasons for the delay in filing the appeal and found that the assessee was prevented by sufficient cause from filing it on time. Consequently, the delay of one day was condoned. The assessee's counsel argued that the CIT(A) had summarily rejected the appeal without proper opportunity of hearing and without discussing merits, solely based on alleged non-compliance. The Tribunal noted that the decision was covered by a High Court ruling emphasizing the importance of communication in tax matters, stating that placing notices on the e-portal is not sufficient without explicit communication. The Tribunal set aside the CIT(A)'s order, directing a fresh decision with proper opportunity for the assessee and serving notice through physical and electronic modes.

In conclusion, the appeal was treated as allowed for statistical purposes, and the Tribunal emphasized the necessity of following principles of natural justice in tax proceedings. The judgment was pronounced on 13.08.2024.

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