2015 (11) TMI 1051 - AT - Income Tax

Non serving of notice of demand - Held that - the assessee has applied for certified copy of the demand notice for the relevant assessment year 2000-01 and the same has been issued by the Department. The appeals of the assessee were dismissed by the Commissioner of Income-tax (Appeals) on the technical ground that the demand notice, in original, was not filed by the assessee along with the appeal papers. We find that the assessee has explained that it was never served with the notice of demand and therefore, could not file the same along with the memorandum of appeal on Form 35 before the Commissioner of Income-tax (Appeals). In the peculiar facts and circumstances of the case we are of the view that it shall be in the interest of justice to restore the issue to the file of the Commissioner of Income-tax (Appeals) to decide the same de novo on merits after allowing reasonable opportunity of hearing to both the parties and the assessee is directed to file the certified copy of the demand notice - Decided in favour of assessee for statistical purposes.

Summary

Issues involved:
1. Failure to serve notice of demand to the assessee.
2. Dismissal of appeals by the Commissioner of Income-tax (Appeals) due to technical grounds.
3. Restoration of the issue to the file of the Commissioner of Income-tax (Appeals) for de novo decision.

Analysis:
1. The first issue revolves around the failure to serve the notice of demand to the assessee for the assessment year 2000-01. The assessee contended that they were never served with the notice of demand by the Assessing Officer, leading to the inability to file it along with the appeal papers. The Department later issued a certified copy of the demand notice, which the assessee received. The Tribunal acknowledged the non-receipt of the notice by the assessee and deemed it necessary in the interest of justice to allow the assessee another opportunity to present their case before the Commissioner of Income-tax (Appeals) on merits.

2. The second issue pertains to the dismissal of the appeals by the Commissioner of Income-tax (Appeals) based on technical grounds related to the non-filing of the original demand notice. Despite the assessee's explanation regarding the non-receipt of the notice, the appeals were rejected. The Tribunal, after considering the submissions and orders, found it appropriate to set aside the dismissal and restore the issue to the Commissioner of Income-tax (Appeals) for a fresh decision on merits. The Tribunal directed the assessee to submit the certified copy of the demand notice and participate in the appeal process before the Commissioner of Income-tax (Appeals).

3. The final issue involves the Tribunal's decision to allow both appeals of the assessee for statistical purposes. By directing the restoration of the issue to the Commissioner of Income-tax (Appeals) for a de novo decision and emphasizing the need for a fair hearing and cooperation from the assessee, the Tribunal ensured that justice was served in the case. The judgment was pronounced openly on July 24, 2015, marking the conclusion of the legal proceedings.