2021 (2) TMI 1131 - AT - Income Tax

Ex-parte assessment order by AO and CIT-A - HELD THAT - The present case it is an admitted fact that the A.O. passed the assessment order ex parte and the Ld. CIT(A) also passed the impugned order ex parte . It is noticed that the Ld. CIT(A) mentioned in the impugned order that various notices were issued to the assessee but there was no compliance and that the latest notice was issued on 07/08/2018 for compliance on 14/08/2018. Nothing is brought on record to substantiate that the notices issued either by the A.O. or by the Ld. CIT(A) were served upon the assessee. It is well settled that nobody should be condemned, unheard as per the maxim, audi alteram partem . We therefore keeping in view the principles of natural justice deem it appropriate to set aside this case back to the file of Ld. A.O. to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee.

Summary

Issues:
1. Condonation of delay in filing appeals.
2. Ex parte orders passed by the Ld. CIT(A) without providing proper opportunity of being heard.
3. Quantum addition in ITA No. 526/ASR/2018.
4. Penalty under section 271(1)(c) in ITA No. 527/ASR/2018.

Condonation of Delay:
The appeals by the Assessee were found to be three days beyond the limitation period. The Assessee submitted a condonation application citing difficulties in personally submitting the appeal papers due to residing in a remote area near the border. The delay was deemed unintentional, and after considering submissions, the delay was condoned, and the appeals were admitted.

Ex Parte Orders:
The main grievance in both appeals was the ex parte orders passed by the Ld. CIT(A) without offering a proper opportunity to be heard. The Assessee contended that no notice for hearing was received, and both the A.O. and Ld. CIT(A) passed orders ex parte. The Tribunal noted the lack of evidence of notice service and emphasized the principle of natural justice, setting aside the case for fresh adjudication with due opportunity to be heard.

Quantum Addition - ITA No. 526/ASR/2018:
The A.O. initiated proceedings under section 147 r.w.s. 148 of the Income Tax Act due to non-filing of income tax return by the Assessee. The A.O. passed an ex parte order determining income at a specific amount. The Ld. CIT(A) upheld this decision, leading the Assessee to appeal, arguing errors in the assessment and lack of opportunity to be heard. The Tribunal set aside the matter for fresh adjudication.

Penalty under Section 271(1)(c) - ITA No. 527/ASR/2018:
The penalty appeal was found to be consequential to the quantum addition appeal. The Tribunal set aside the penalty appeal for fresh adjudication along with directions for full cooperation from the Assessee during the proceedings. Ultimately, the appeals of the Assessee were allowed for statistical purposes.

In conclusion, the Tribunal addressed the issues of delay condonation, ex parte orders, quantum addition, and penalty in a detailed manner, emphasizing the importance of providing a fair opportunity to be heard and ensuring proper adjudication in accordance with the law.