2014 (10) TMI 1032 - AT - Income Tax

Ex-parte order of CIT-A - non appearance by assessee - as submitted reason for non appearance before the Ld. CIT(A) and the Assessing officer is beyond the control of the assessee as assessee had gone abroad and he was not aware about the fixation of the case - HELD THAT - Three adjournments were sought by the Ld. Counsel for the assessee from the office of the Ld. CIT(A) which were granted. On the last date none appeared. In these circumstances no doubt the Ld. CIT(A) had the right to proceed on exparte basis but when he is supposed to adjudicate the case after considering the material on record and record his findings. Instead of doing so the Ld. CIT(A) has dismissed the appeal in limine. Therefore in the interest of justice we set aside his order and restore the matter back to his file with a direction to adjudicate the issues after providing adequate opportunity to the assessee. The assessee is also directed to cooperate in the appeal proceedings. Appeal of the assessee is allowed for statistical purposes.

Summary

Issues:
Appeal against order of Ld CIT(A) - Justification of rejection without considering merits - Non-appearance reasons - Remand sought by assessee - Support for Ld. CIT(A)'s order - Ex-parte basis decision - Restoration of matter for adjudication - Direction for cooperation in appeal proceedings.

Analysis:
The appeal before the Appellate Tribunal ITAT Chandigarh challenged the order of the Ld CIT(A), Patiala dated 27.9.2013. The primary contention raised by the assessee pertained to the rejection of the appeal without delving into the merits of the case due to reasons for non-appearance, specifically citing the assessee's absence abroad and lack of awareness regarding the case's fixation. The assessee sought a remand for adjudication on merits, emphasizing the Ld. CIT(A)'s failure to address the substantive issues. Conversely, the Ld. DR for the revenue supported the Ld. CIT(A)'s decision.

Upon evaluating the submissions, the Tribunal noted that the Ld. Counsel for the assessee had requested and received three adjournments from the Ld. CIT(A), with none appearing on the final date. While acknowledging the Ld. CIT(A)'s authority to proceed ex-parte, it was observed that the dismissal of the appeal without considering the material on record and recording findings was not in line with the expected adjudication process. In the interest of justice, the Tribunal set aside the Ld. CIT(A)'s order, directing a restoration of the matter to the Ld. CIT(A)'s file with a specific instruction to adjudicate the issues after affording ample opportunity to the assessee. Additionally, the assessee was instructed to cooperate in the appeal proceedings.

Ultimately, the Tribunal allowed the appeal of the assessee for statistical purposes, emphasizing the importance of due process and substantive adjudication in tax matters. The order was pronounced in the open court on 30.10.2014, ensuring transparency and procedural regularity in the judicial process.