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2014 (8) TMI 953 - AT - Income TaxValidity of assessment order passed - Violation of principle of natural justice - Held that - As can be seen from the facts and materials on record, the assessment in case of the assessee was completed u/s 144 of the Act, in absence of compliance by the assessee. Similarly, CIT(A) also dismissed the appeal of the assessee in limini without giving her an opportunity of hearing by presuming that the date of receipt of order mentioned by the assessee as 28.5.2012 to be false. It is also apparent from the order of the CIT(A) that he has treated the appeal to have been filed late by 5 months by assuming that the assessment order was dispatched and served on the assessee on 01.11.2011, the very same day the assessment order was passed. However, on what basis the CIT(A) has come to the conclusion that the assessment order was dispatched on 01.11.2011 and served on the assessee on the very same day is not forthcoming from the record. No such opportunity has been given to the assessee to explain the case. In the aforesaid circumstances, we are of the view that the order passed by the CIT(A) is in violation of rules of natural justice. Accordingly, we are inclined to set aside the order of the CIT(A) and remit the matter back to his file for considering the issue afresh after giving a fair opportunity of being heard to the assessee. If it is found from record that the assessment order was never served on the assessee on 01.11.2011 and was only served on her on 28.5.2012 in terms with the statutory provision, then CIT(A) should hear the appeal on merit without insisting upon condonation of delay. - Decided in favour of assessee.
Issues:
1. Dismissal of assessee's appeal by CIT(A) in limini due to alleged delay in filing the appeal. Analysis: The appeal before the Appellate Tribunal ITAT Hyderabad was directed against the order of CIT(A)-III, Hyderabad dismissing the assessee's appeal pertaining to the assessment year 2009-10 in limini. The assessing officer completed the assessment under section 144 of the Income-tax Act by making additions to the total income declared by the assessee, resulting in a total income of Rs. 27,21,670. The CIT(A) dismissed the appeal ex-parte in limini on the grounds of delay in filing the appeal. The CIT(A) noted discrepancies in the date of receipt mentioned by the assessee and the actual dispatch date of the assessment order, concluding that the appeal was filed beyond the prescribed time without any petition for condoning the delay. The Legal Representative of the assessee argued that the original assessment order and demand notice were never received by the assessee, and the appeal was filed promptly upon receiving the order on 28.5.2012. The contention was that there was no delay in filing the appeal, and the CIT(A) erred in dismissing the appeal without giving the assessee an opportunity to explain the circumstances. The Departmental Representative relied on the order of the CIT(A. The Appellate Tribunal observed that the CIT(A) had dismissed the appeal without providing a fair opportunity for the assessee to explain the alleged delay in filing the appeal. The Tribunal found that the CIT(A) had not justified his conclusion regarding the dispatch and service date of the assessment order. Therefore, the Tribunal held that the order passed by the CIT(A) violated the rules of natural justice and remitted the matter back to the CIT(A) for reconsideration after affording a fair opportunity of being heard to the assessee. The Tribunal directed the CIT(A) to hear the appeal on its merits if it was found that the assessment order was served to the assessee in accordance with statutory provisions. In conclusion, the Appellate Tribunal allowed the assessee's appeal for statistical purposes, setting aside the order of the CIT(A) and emphasizing the importance of adhering to the principles of natural justice in such matters.
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