2015 (10) TMI 2543 - AT - Income Tax

Notice of hearing not properly served - authorized person - Held that - The affidavit filed by the assessee shows that the notice has been received by the employee of the firm, who had not informed any of the partner, therefore, partners of the firm had not represented the case on the date fixed. The case is required to be decided on merit after providing reasonable opportunity of being heard to the assessee. Therefore, we in the interest of justice, recall our order dated 17/10/2014 passed in ITA No. 256/JP/2012. The registry of this office may fix the case in regular hearing. The assessee is directed that if any paper book to be filed, should be filed in advance and also provide copy of same to the revenue. In the result, the present MA petition is allowed.

Summary

Issues Involved:
Proper service of notice for hearing leading to non-attendance by the respondent.

Analysis:
The assessee filed a Misc. application against the order of the ITAT, Jaipur Bench, Jaipur dated 17/10/2014 for A.Y. 2008-09, claiming that the notice of hearing was not properly served, resulting in non-attendance. The assessee expressed eagerness to attend but could not due to improper notice. The ITAT decided the appeal ex parte as the assessee did not appear on the hearing date, despite notice being served through registered A.D. The assessee filed an affidavit stating that the notice was received by an employee who failed to inform any partner, leading to non-representation. The ITAT, after hearing both parties, acknowledged the circumstances and recalled the order in the interest of justice. The case was directed to be decided on merit after providing a reasonable opportunity of being heard to the assessee. The MA petition was allowed, and the order was pronounced on 09/10/2015.

This judgment highlights the importance of proper service of notice for hearings to ensure the parties have a fair opportunity to present their case. The failure to inform the partners of the firm about the hearing date due to the negligence of an employee led to non-attendance by the assessee, resulting in an ex parte decision. The ITAT, considering the circumstances beyond the assessee's control, recalled the order to provide a chance for the case to be decided on merit. This decision emphasizes the principles of natural justice and the right to be heard, ensuring a fair and just adjudication process. The direction to file any necessary documents in advance and provide copies to the revenue further promotes transparency and procedural fairness in the proceedings.