2020 (1) TMI 1525 - AT - Income Tax

CIT(A) dismissed the appeal ex-parte qua the assessee and had failed to decide the appeal by passing reasoned assessment order - HELD THAT - We set aside the matter back to the file of the CIT(A) with direction to the CIT(A) to decide the issue on merits by a reasoned order, after affording reasonable opportunity of hearing to the assessee - assessee is also directed to appear before the CIT(A) and participate in the appellate proceedings. The appeal is thus decided on this preliminary issue without going into the merits of the addition. Hence this appeal is restored back to the file of CIT(A) to decide the issue on merits after affording reasonable opportunity of hearing to the assessee. The assessee is also directed to comply with notices issued by the CIT(A). The preliminary issue raised in this appeal is thus decided in favour of assessee.

Summary

Issues: Appeal against ex-parte order by CIT(A) without going into merits.

The judgment pertains to an appeal filed by the assessee against the order of the CIT(A)-2, New Delhi, for the assessment year 2011-12. The appeal challenges the ex-parte decision made by the CIT(A) without delving into the merits of the addition. The assessee contended that the CIT(A) passed the ex-parte order without granting sufficient hearing opportunity and without examining the case's merits. On the other hand, the Revenue's representative argued that the assessee was given ample opportunity. The ITAT observed that under Section 250(6) of the Income Tax Act, the CIT(A) must decide appeals after hearing both parties, stating the points for determination, the decision, and the reasons. The CIT(A) cannot dismiss appeals for non-prosecution based on certain precedents. The ITAT found the CIT(A)'s order flawed as it was ex-parte and lacked a reasoned assessment. Therefore, the ITAT set aside the matter for the CIT(A) to decide on the merits with a reasoned order after providing a fair hearing to the assessee. The assessee was directed to participate in the proceedings. The appeal was allowed solely on this procedural issue without addressing the merits.

In conclusion, the ITAT directed the CIT(A) to reconsider the appeal on its merits after granting a fair hearing to the assessee. The decision highlighted the importance of providing a reasoned assessment and ensuring that both parties have the opportunity to present their case. The appeal was allowed based on the procedural flaw in the CIT(A)'s ex-parte order, emphasizing the necessity for a thorough and fair evaluation of the case before making a decision.