2018 (4) TMI 1414 - AT - Income Tax

Reopening of assessment - Held that - Before the CIT-A there was no representation or explanation on behalf of the assessee regarding the claim of the assessee and the grounds of appeal raised before him. There was no adequate opportunity of hearing to assessee to substantiate its claim properly. Therefore, taking into consideration the submissions of the assessee, facts and circumstances of the case and in the interest of natural justice, we deem it fit and proper to remand the matter to the file of the CIT-A to decide the issue in hand afresh by giving the assessee adequate opportunity of hearing. The assessee is also directed not to seek any adjournment. Appeal of the assessee is allowed for statistical purposes.

Summary

Issues:
1. Ex parte confirmation of order by CIT-A without proper opportunity to assessee.

Analysis:
The appeal was against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2009-10. The main issue was whether the CIT-A was justified in confirming the order of the Assessing Officer by making additions without giving the assessee a proper opportunity to present its case. The assessee had appeared before the CIT-A in response to notices but sought adjournments due to the illness of their authorized representative. Despite this, the CIT-A passed an ex parte order without allowing the assessee to substantiate their claim properly.

The assessee argued that they were not given adequate opportunity to present their case, while the Departmental Representative contended that sufficient opportunities were provided, but the assessee did not prosecute its case effectively. The Tribunal noted that the assessee had questioned the validity of the proceedings under section 147 of the Income Tax Act before the CIT-A but was not given a fair chance to explain their claim or grounds of appeal. Considering the principles of natural justice, the Tribunal decided to remand the matter back to the CIT-A for a fresh decision, directing the assessee not to seek any further adjournments. The assessee was given the opportunity to submit evidence and explanations to support their contentions.

Ultimately, the Tribunal allowed the appeal of the assessee for statistical purposes, emphasizing the importance of providing a fair hearing and adequate opportunity to present arguments in tax matters. The decision was pronounced in open court on 02-02-2018.