2019 (5) TMI 547 - AT - Income Tax

Rectification u/s 254 - assessee has filed an affidavit stating that the notice of hearing for the appointed date was not served on the assessee and the assessment order was passed ex parte in the absence of the assessee - HELD THAT - Considering the circumstances pointed out on behalf of the assessee, we deem it appropriate to recall the appeal for fresh hearing as matter should be recalled for fresh hearing after giving opportunity to the assessee to defend its appeal. Miscellaneous application filed by the assessee is allowed.

Summary

Issues:
Rectification of order under s. 254(1) of the Act due to non-service of notice leading to an ex parte assessment.

Analysis:
The Appellate Tribunal ITAT Ahmedabad considered a Miscellaneous Application filed by the assessee seeking rectification of an order dated 23.02.2018 passed under s. 254(1) of the Act. The application highlighted that the notice of hearing for the appointed date was not served on the assessee, resulting in an ex parte assessment order. The learned AR representing the assessee argued for the matter to be recalled for fresh hearing to allow the assessee to defend its appeal. The Tribunal, acknowledging the circumstances presented, decided to recall the appeal for a fresh hearing to uphold the principles of natural justice.

The Tribunal noted that recalling the appeal for a fresh hearing would ensure the principle of natural justice is upheld, as the earlier order passed in the absence of the assessee was set aside. The appeal was scheduled for a fresh hearing on 25.07.2019, with the Registry directed to list the appeal in consultation with both parties. The formal notice of hearing was dispensed with the consent of both parties. As a result, the miscellaneous application filed by the assessee seeking rectification was allowed. The order was pronounced in the Open Court on 03/05/2019.