2020 (7) TMI 808 - HC - Income Tax

ITAT remanding the matter back to AO - Whether the Tribunal was right in passing an order merely on the ground that the documents relied on by the Assessee was not available in the file? - HELD THAT - Unfortunately, the Assessee, who was the appellant before the Tribunal was not present when the case was heard and he had also not engaged an Advocate, to argue on his behalf. The Tribunal records that its Registry placed a copy of the postal acknowledgement card to show that the notice has been served on the Assessee. Assessee has filed the copies of the revenue records in the typed set of papers, and on perusal of the same, the seal of the Assessing Officer is found at the bottom of the photostat copies of the documents. Therefore, it is clear that the documents were part of the assessment file. Considering the fact that the Tribunal had proceeded ex parte on account of non-appearance of the Assessee, and though the Tribunal might have been justified by doing so, yet, considering the fact that the assessment order is of the year 2015, and the Assessing Officer has already perused the records and given relief to the Assessee, and the appeal filed by the Assessee before the Tribunal arises out of the order passed under Section 263 of the Act, this Court is of the view that the matter can be remanded back to the Tribunal for fresh decision on merits, after affording an opportunity to the Assessee. Tax Case appeal is allowed, the impugned order is set aside and the matter is remanded back to the Tribunal for fresh decision on merits.

Summary

Issues:
Appeal against order of Income Tax Appellate Tribunal for Assessment Year 2006-2007 - Substantial questions of law - Remand to Assessing Officer for examination of documents - Non-appearance of Assessee before Tribunal - Remand back to Tribunal for fresh decision on merits.

Analysis:
The appeal was filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal for the Assessment Year 2006-2007. The substantial questions of law raised included the Tribunal's decision based on the unavailability of documents relied on by the Assessee and the confirmation of the order without examining the material on record. The Tribunal remanded the matter to the Assessing Officer to examine the revenue records filed by the Assessee to determine if the lands sold were agricultural lands. The Commissioner of Income Tax (Appeals) had directed reassessment of the agricultural lands, leading to the Assessee's appeal. The Assessee was not present during the Tribunal hearing, and the Tribunal proceeded ex parte due to non-appearance, despite the documents being part of the assessment file with the seal of the Assessing Officer. The Court decided to remand the matter back to the Tribunal for a fresh decision on merits, allowing an opportunity for the Assessee to be heard.

The Court noted that the Assessee had filed copies of the revenue records, and the Assessing Officer had already perused the records and provided relief to the Assessee. Despite the ex parte proceedings, the Court considered the assessment order's timing and the need to afford the Assessee an opportunity for a fair hearing. The Court directed the Tribunal to request the Revenue to produce the entire Assessment file and make a decision on merits after hearing the Assessee. The substantial questions of law were left open, and no costs were awarded in the case. The Court allowed the Tax Case appeal, set aside the impugned order, and remanded the matter back to the Tribunal for a fresh decision on merits, ensuring compliance with the law.