Fair opportunity of hearing requires remand when an appeal is dismissed without adequate compliance time and merits remain undecided.

A dismissal of the first appeal for non-compliance, after only a very short time was given for response, was treated as lacking a fair opportunity of hearing. The delay in filing the appeal was condoned on reasonable cause, and the appellate order was set aside. The matter was restored to the appellate authority for de novo adjudication on merits, leaving the exemption claim under section 10(23C)(iiiad) open for fresh decision. The assessee's grounds were allowed for statistical purposes.

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Issues: Whether the denial of exemption under section 10(23C)(iiiad) and the dismissal of the first appeal without fair opportunity warranted restoration of the matter to the appellate authority for de novo adjudication.

Analysis: The delay in filing the appeal was condoned on the basis of reasonable cause. On the merits of the grievance, the record showed that the appellate authority had given a very short time for compliance and had dismissed the appeal for non-compliance. This indicated that a fair opportunity of hearing had not been afforded. In the interest of justice, the matter was restored to the file of the appellate authority for fresh adjudication on merits.

Conclusion: The issue was remitted for de novo consideration and the assessee's grounds were allowed for statistical purposes.

Final Conclusion: The assessee obtained a remand for fresh adjudication, with the earlier appellate findings set aside and the substantive exemption issue left open for decision on merits.

Ratio Decidendi: Where an appeal is dismissed without granting a fair opportunity of hearing, the proper course is to set aside the appellate order and restore the matter for fresh adjudication on merits.

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