2020 (11) TMI 1113 - AT - Income Tax

Denial of natural justice - Validity of CIT(A) order - as argued CIT(A) has decided the matter of controversy in absence of the assessee and without giving an opportunity of being heard to the assessee in accordance with law - HELD THAT - On appraisal of the order of the CIT(A) dated 12.02.2019 passed by the CIT(A) we find that the CIT(A) has decided the matter of controversy in absence of the assessee/Representative of the assessee without giving an opportunity of being heard to the assessee in the accordance with law. A proper and reasonable opportunity is required to be given to the assessee before the deciding the matter of controversy in accordance with law. Accordingly in the interest of justice, we remit the issue raised in the appeal to the file of the Ld. CIT(A). Ld. CIT(A) is directed to consider the issue afresh and pass an order on the merits of the case after giving after giving an proper opportunity of being heard to the assessee in accordance with law. Therefore, in the said circumstances, we are of the view that the order of the CIT(A) is not liable to be sustainable in the eyes of law.

Summary

Issues involved:
Appeal against order of CIT(A) for A.Y.2010-11 - Rejection of appeal without considering merit - Order passed against deceased person - Validity of notice u/s 147/148 - Addition of non genuine purchase - Opportunity of being heard to the assessee - Setting aside CIT(A) finding - Remitting the issue to CIT(A) for fresh consideration.

Analysis:
The appellant filed an appeal against the order dated 12.02.2019 passed by the Commissioner of Income Tax (Appeals) relevant to the Assessment Year 2010-11. The appellant raised multiple grounds challenging the decision of the CIT(A). The first ground contended that the CIT(A) erred in rejecting the appeal without considering the merit of the case. The second ground argued that the order passed against the deceased person is null and void ab-initio. The third ground questioned the validity of the notice u/s 147/148 issued by the Assessing Officer. The fourth ground objected to the addition of Rs.1,12,06,190/- as non-genuine purchase. Additionally, the appellant sought permission to raise additional or alternative grounds at the time of hearing and prayed for justice and relief.

During the hearing, the Ld. Representative of the Department presented arguments, while the assessee did not argue on merits but raised the issue that the CIT(A) decided the matter in absence of the assessee without providing an opportunity to be heard, which is against the law. The Tribunal observed that a proper opportunity must be given to the assessee before deciding the matter. Citing relevant case laws, the Tribunal concluded that the order of the CIT(A) was not justifiable and set aside the finding on all issues. The matter was remitted back to the CIT(A) with directions to consider the issue afresh, pass an order on merits after giving a proper opportunity of being heard to the assessee in accordance with the law.

In the final decision, the Tribunal allowed the appeal filed by the assessee for statistical purposes. The order was pronounced in the open court on 12/11/2020.