2022 (12) TMI 381 - AT - Income Tax

Ex parte order of CIT-A - CIT(A) rejected the adjournment petition filed by the assessee and decided the matter ex-parte qua the assessee - assessee submits that the assessee had bonafide reasons for non-appearance on the scheduled date of hearing before the CIT(A) and the assessee had duly requested the learned CIT(A) for a short adjournment and given an opportunity the assessee will duly comply to the notices of hearing and ensure full cooperation for expeditious disposal of appeal on merits - HELD THAT - Having heard the rival contentions and having perused the material on record, we are inclined to uphold the plea of the assessee and provide yet another opportunity of hearing to the assessee. We see no harm in providing one more opportunity of hearing to the assessee, and the assessee has assured us of his full cooperation. In case, however, the assessee does not fully co-operate in expeditious disposal of remanded proceedings, learned CIT(A) will be at liberty to take such action, apart from disposal of appeal based on material on record, as he deems fit and proper and judicious. The matter is thus restored to the file of the learned CIT(A) for adjudication de novo after affording yet another opportunity of hearing to the assessee, by way of a speaking order, and in accordance with the law. Ordered, accordingly.

Summary

Issues:
Challenging the correctness of an ex-parte order dated 14th December 2018 passed by the learned CIT(A) in the matter of assessment under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 for the assessment year 2005-06.

Analysis:
The appellant challenged the ex-parte order passed by the CIT(A) and contended that the CIT(A) erred in framing such an order. The appellant argued that the CIT(A) did not accept their letter of adjournment on the date of the hearing. Upon review, it was found that the CIT(A) rejected the adjournment petition and proceeded ex-parte on 7th December 2018. The appellant's counsel explained that there were valid reasons for the non-appearance and requested a short adjournment. The Departmental Representative, however, argued that the appellant had been given a fair opportunity and no further hearing was necessary. After considering the arguments, the tribunal decided to provide another opportunity for hearing to the appellant. The tribunal emphasized the importance of the appellant's full cooperation for the expeditious disposal of the appeal. If the appellant fails to cooperate, the CIT(A) would have the discretion to take appropriate action. The matter was remitted to the CIT(A) for fresh adjudication, and other grievances related to the merits were deemed infructuous and dismissed. The appeal was allowed for statistical purposes, and the decision was pronounced on 23rd August 2022.