2020 (12) TMI 205 - AT - Income Tax

Violation of principle of natural justice - CIT(Appeals) passed an ex-parte order relying on the material available on record specifically Form-35 - DR conceded to the fact that the cases were decided not on merits - Specific ground raised that the Assessing Officer has not given proper opportunity of hearing to the assessee and also before us in Form 36 of grounds of appeal memo - HELD THAT - Assessee did not respond to any of the notices and has not made any submission for adjournment and also there were no written submissions on the merits of the case before the First Appellate Authority. Maintaining the balance of natural justice and also that the Income Tax Act is a welfare legislation and also for the fact that the rights and liabilities of the parties herein are yet to be decided on merits by the Ld. CIT(Appeals), the assessee has not filed any written submission on record before the Ld. CIT(Appeals) regarding the grounds of appeal and therefore, we are of the considered opinion that all these cases should travel back to the file of the Ld. CIT(Appeals) for proper adjudication on merits. We, therefore, set aside the respective orders of the Ld. CIT(Appeals) for each of the assessment years in appeals before us and remit the matter back to respective files of the Ld. CIT(Appeals) for determination of rights and liabilities of the parties herein.

Summary

Issues:
Appeals based on ex-parte orders due to lack of response from the assessee, violation of natural justice, failure to provide proper opportunity for hearing by the authorities, need for proper adjudication on merits.

Analysis:
The appeals in question were filed by a common assessee against orders of the Ld. CIT(Appeals)-2, Aurangabad for various assessment years. During the virtual hearing, the assessee was absent, and only the submissions of the Ld. DR were recorded. It was noted that the Ld. CIT(Appeals) had passed ex-parte orders based on available material like Form-35, without considering merits. The grounds of appeal highlighted the lack of proper opportunity for hearing and violation of natural justice by the authorities.

Upon reviewing the orders of the Ld. CIT(Appeals) for each assessment year, it was found that multiple notices were served to the assessee, who failed to respond or provide any submissions. In light of the principles of natural justice and the welfare nature of the Income Tax Act, it was deemed necessary for the cases to be sent back to the Ld. CIT(Appeals) for proper adjudication on merits. The assessee was directed to appear before the Ld. CIT(Appeals) with necessary documents for a fair hearing, emphasizing compliance with natural justice principles.

As a final opportunity to the assessee, all orders of the Ld. CIT(Appeals) for the respective assessment years were set aside, and the matters were remitted back for determination of rights and liabilities. The assessee was instructed to present their case on merits, and the Ld. CIT(Appeals) was tasked with ensuring a fair adjudication process. The appeals of the assessee were allowed for statistical purposes, with the order pronounced on a specific date.

In conclusion, the judgment highlighted the importance of providing a fair opportunity for hearing, adherence to natural justice principles, and the need for cases to be decided on merits rather than through ex-parte orders. The decision aimed to ensure a just resolution based on proper examination of facts and compliance with legal procedures.