2014 (12) TMI 1101 - AT - Income Tax

Violation of principle of natural justice - ex parte order passed without providing sufficient opportunity of hearing to the appellant - Held that - CIT(A) has passed ex parte appellate order in a summary manner and has not decided the issue before him on merits. In these facts of the case, we set aside the order of the CIT(A) to his file with direction to pass de novo appellate order in accordance with law after providing opportunity of hearing to both the parties. The CIT(A) is directed to decide the issue before him on merits thereof. The assessee is directed to cooperate with the revenue authorities in finalization of the appellate proceedings before the CIT(A) and on its own approach the office of the CIT(A) to obtain the notice of hearing within the period of 60 days, from the receipt of this order of the Tribunal, and to place all the details before appellate authority - Matter remanded back - Decided in favour of assesse.

Summary

Issues: Ex parte order by CIT(A) without sufficient opportunity of hearing to the appellant.

In this case, the appellant challenged the ex parte appellate order passed by the CIT(A) for the assessment year 2006-2007, contending that the order was made summarily without considering the merits of the issue. The appellant argued that the CIT(A) should have provided a proper opportunity for a hearing before making a decision. The Tribunal, after reviewing the submissions and orders of the AO and the CIT(A), found that the ex parte order was indeed passed summarily without delving into the merits of the case. Consequently, the Tribunal set aside the CIT(A)'s order and directed a de novo appellate order to be passed, emphasizing the importance of providing a fair opportunity of hearing to both parties. The Tribunal instructed the appellant to cooperate with the revenue authorities during the proceedings and obtain the notice of hearing within a specified period. Additionally, all other grounds of appeal raised by the appellant were also remanded to the CIT(A) for fresh adjudication in accordance with the law. Ultimately, the Tribunal allowed the appeal of the assessee for statistical purposes, indicating that the decision was made solely for record-keeping purposes.