2021 (11) TMI 1018 - AT - Income Tax

Dismissal of appeal for non prosecution - whether notice of hearing was ever served upon the assessee? - HELD THAT - CIT(A) has dismissed the appeal without providing proper opportunity to the assessee. Moreover, he has not decided the appeal after discussing in detail, his reasons for agreeing with the assessment order. In this view of the matter, another opportunity of hearing requires to be given to the assessee to represent his case fully before the ld. CIT(A). Even otherwise, it is trite S. Velu Palandar 1971 (8) TMI 42 - MADRAS HIGH COURT and Ms. Swati Pawa 2019 (4) TMI 89 - ITAT DELHI and incumbent on the ld. CIT(A) to decide an appeal on merit even in the absence of any representation before them. The matter is remitted to the file of the ld. CIT(A) to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the assessee. The assessee, no doubt, shall cooperate in the fresh proceedings before the ld. CIT(A). All pleas available under the law shall remain so available to the assessee. Assessee appeal allowed for statistical purposes.

Summary

Issues:
1. Dismissal of assessee's appeal for non-prosecution by the ld. CIT(A).
2. Lack of proper opportunity provided to the assessee.
3. Need for a fresh hearing to decide the appeal on merit.

Detailed Analysis:
Issue 1: The appeal was dismissed by the ld. CIT(A) due to non-prosecution by the assessee, as observed in the impugned order. The ld. CIT(A) issued multiple notices for hearings, but it is unclear whether the notices were served upon the assessee, as disputed by the assessee. The dismissal was based on the perception that the assessee was not interested in prosecuting the appeal.

Issue 2: The Tribunal found that the appeal was dismissed without providing the assessee with a proper opportunity to present their case. It was noted that the ld. CIT(A) did not discuss in detail the reasons for agreeing with the assessment order. The Tribunal emphasized that it is essential for the ld. CIT(A) to decide an appeal on merit, even in the absence of representation, as per legal precedents such as 'S. Velu Palandar Vs. DCIT' and 'Ms. Swati Pawa vs. Dy. CIT'.

Issue 3: Considering the lack of proper opportunity and the requirement to decide the appeal on merit, the Tribunal remitted the matter back to the ld. CIT(A) for a fresh decision. The ld. CIT(A) was directed to afford the assessee a due and adequate opportunity of hearing to represent their case fully. The Tribunal stressed that the assessee must cooperate in the fresh proceedings, and all legal remedies available to the assessee shall remain accessible.

In conclusion, the Tribunal treated the appeal as allowed for statistical purposes and ordered a fresh hearing by the ld. CIT(A) to decide the appeal on merit, emphasizing the importance of providing the assessee with a fair opportunity to present their case in accordance with the law.