Audi alteram partem required remand where the appellate order was passed without effective participation on merits.

Fairness and audi alteram partem justified restoring the matter where the assessee had repeatedly sought adjournments and remained non-cooperative, yet the appellate order was passed without effective participation on merits. In those circumstances, one further opportunity to place the case on record was warranted. The appellate order was set aside and the dispute remitted for fresh adjudication after giving adequate opportunity of hearing, with costs imposed as a condition.

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Issues: Whether the assessee was denied a fair and meaningful opportunity of hearing before the appellate authority, and whether the matter should be restored for fresh adjudication.

Analysis: The assessee had repeatedly sought adjournments and remained non-cooperative before both the Assessing Officer and the appellate authority. At the same time, the appellate order was substantially passed without effective participation on merits. In these circumstances, the requirement of fairness and audi alteram partem justified one further opportunity to place the matter on record. The appropriate course was to set aside the appellate order and remit the dispute for a fresh decision after giving adequate opportunity and imposing costs as a condition.

Conclusion: The issue is decided in favour of the assessee to the extent that the matter is remanded for fresh adjudication after granting a proper opportunity of hearing.

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