2017 (12) TMI 1805 - AT - Income Tax

Ex-parte order of CIT-A - Assessment u/s 153A - HELD THAT - The notice for hearing was given less than even 10 days before the scheduled date of hearing. As for the CIT(A) s observations about statement of facts we have noticed that the assessee was not specifically put to notice in this regard and thus the assessee did not have any effective opportunity for making up this deficiency. When it was put to the Departmental Representative whether he has any objection to the matter being remitted to the file of the CIT(A) for adjudication on merits he did not have much to say but left the matter to the bench. Shri Aseem Thakkar the assessee has assured us that on the matter being remitted to the file of the learned CIT(A) for adjudication de novo he will ensure strict compliance with the notice of hearing and that the remanded proceedings are expeditiously completed. These discussions and bearing in mind entirety of the case we deem it fit and proper to remit the matter to the file of the learned CIT(A) for adjudication de novo after reasonable opportunity of hearing to the assessee by way of speaking order and in accordance with the law. The assessee is also directed to ensure proper compliance with the notice of hearing by the learned CIT(A) failing which the CIT(A) will be at liberty to dispose of the matter on the basis of the material on record. - Appeals are allowed for statistical purposes

Summary

Issues: Challenging ex-parte orders by CIT(A) for assessment years 2005-06 to 2009-10 & 2011-12 under section 153A r.w.s 144 / 143(3) of the Income-tax Act, 1961.

Analysis:
1. The appellant challenged the ex-parte orders passed by the Commissioner of Income-tax (Appeals) for various assessment years. The appellant contended that the orders were passed without giving a proper opportunity for hearing and that the notice of hearing was served less than 10 days before the scheduled date. The appellant also highlighted that there was no specific notice regarding the statement of facts, depriving them of a fair chance to rectify any deficiencies. The Departmental Representative did not object to remitting the matter back to the CIT(A) for fresh adjudication. The appellant's counsel assured strict compliance with the hearing notice for the remanded proceedings.

2. Considering the above circumstances, the Tribunal decided to remit the matter back to the CIT(A) for a fresh adjudication. The Tribunal emphasized that the assessee should be provided with a reasonable opportunity for a hearing, ensuring compliance with the notice of hearing. The order should be a speaking one and in accordance with the law. Additionally, the appellant was directed to ensure proper adherence to the hearing notice; failure to comply would empower the CIT(A) to dispose of the matter based on the existing record.

3. As a result, all appeals were allowed for statistical purposes, signifying that the matter was remitted back to the CIT(A) for a de novo adjudication. The Tribunal pronounced the decision openly on December 27, 2017. This judgment highlights the importance of providing a fair opportunity for a party to present its case and the necessity for adherence to procedural requirements in tax assessment proceedings to ensure justice and compliance with legal principles.