2019 (9) TMI 369 - AT - Income Tax

Exparte order by CIT-A - AR submitted that the CIT(A) has not granted adequate and reasonable opportunity to remove the defects in the appeal memo - HELD THAT - CIT(A) has dismissed the appeal of the assessee on the ground that the defect was not removed in the memorandum of appeal. From the records, it can be seen that the notice was also not properly served to the assessee at the address mentioned in Form-35. Therefore, in the interest of justice, it will be appropriate to remand back this matter to the file of the CIT(A) and the matter may be decided on merit. Needless to say that the assessee will remove the defect in appeal, i.e., rectify Form 35 before the CIT(A) within a period of 30 days from the receipt of this order. The assessee be given opportunity of hearing by following the principles of natural justice. Accordingly, the appeal of the assessee is partly allowed for statistical purposes.

Issues:
1. Adequate opportunity to remove defects in appeal memo.
2. Proper service of notice to the assessee.
3. Granting opportunity for personal hearing.
4. Deciding the appeal on merits following principles of natural justice.

Analysis:

Issue 1: Adequate opportunity to remove defects in appeal memo
The appeal was directed against an order passed by the CIT(A) dismissing the appeal as not maintainable due to defects in the appeal memo. The appellant contended that the CIT(A) erred in not allowing adequate and reasonable opportunity to rectify the defects. The appellant argued that the defects were curable and should have been rectified before deciding the appeal on merits. The Tribunal observed that the defect in the appeal memo was not rectified and the notice was not properly served to the appellant. Consequently, the Tribunal remanded the matter back to the CIT(A) for the appellant to rectify the defect within 30 days and granted an opportunity for a hearing, emphasizing the importance of following principles of natural justice.

Issue 2: Proper service of notice to the assessee
The appellant raised concerns regarding the notice not being properly served to the correct address mentioned in Form-35. This led to a delay in receiving the notice and attending the proceedings, resulting in the dismissal of the appeal by the CIT(A). The Tribunal acknowledged this issue and emphasized the importance of proper service of notice to ensure the appellant's right to be heard. The matter was remanded back to the CIT(A) to rectify the service issue and grant the appellant an opportunity for a hearing.

Issue 3: Granting opportunity for personal hearing
The appellant argued that the CIT(A) did not grant adequate opportunity for a personal hearing to present their case. The Tribunal considered this argument and directed the CIT(A) to provide the appellant with an opportunity for a hearing following the principles of natural justice. This decision aimed to ensure that the appellant had a fair chance to present their case before a decision was made on the appeal.

Issue 4: Deciding the appeal on merits following principles of natural justice
The Tribunal highlighted the importance of deciding the appeal on merits and following the principles of natural justice. It noted that the CIT(A) had dismissed the appeal without considering the grounds raised by the appellant. Therefore, the Tribunal remanded the matter back to the CIT(A) to decide the appeal on merit after the appellant rectified the defects in the appeal memo and was given an opportunity for a hearing. This decision aimed to uphold the principles of natural justice and fairness in the adjudication of the appeal.

In conclusion, the Tribunal partly allowed the appeal for statistical purposes, emphasizing the need for proper rectification of defects, granting opportunities for a hearing, and deciding the appeal on merits following the principles of natural justice.

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