2017 (12) TMI 743 - AT - Income Tax

Reopening of assessment - Lack of proper and sufficient opportunity given by CIT(Appeals) - Held that - Assessee, who has appeared personally, submits that all the three notices of hearing received from the office of the ld. CIT(Appeals) were duly handed over by him to his Authorized Representative, C.A. Vivek Jaiswal. He submits that his Authorized Representative, however, could not appear before the ld. CIT(Appeals) on the given dates as he was out of station. He submits that he is very much interested in prosecuting his appeal filed before the ld. CIT(Appeals) and should not be made to suffer because of the mistakes committed by his Authorized Representative. Keeping in view all the submissions made by the assessee himself, we consider it fair and proper and in the interest of justice to give one more opportunity to the assessee to put forth his case before the ld. CIT(Appeals). - Decided in favour of assessee for statistical purposes.

Summary

Issues: Lack of proper opportunity before CIT(Appeals)

In this case, the appellant, an individual deriving income mainly from salary, filed a return of income initially accepted by the Assessing Officer under section 143(1). However, the assessment was later reopened, and additional income was offered by the appellant. The Assessing Officer determined the total income after making certain additions. The appellant appealed this decision before the CIT(Appeals), but due to non-compliance with hearing notices, the appeal was dismissed ex-parte. The appellant, represented by his Authorized Representative, requested another opportunity to present his case before the CIT(Appeals) as the representative was unavailable on the scheduled dates. The Tribunal found the appellant's request reasonable and set aside the ex-parte order, remitting the matter back to the CIT(Appeals) for a fresh disposal. The appellant was directed to appear before the CIT(Appeals) on a specified date for further proceedings without the need for additional notices. Consequently, the appeal was treated as allowed for statistical purposes.

This judgment primarily addresses the issue of lack of proper opportunity before the CIT(Appeals). The appellant's Authorized Representative was unable to attend the scheduled hearings, leading to the dismissal of the appeal ex-parte. The Tribunal considered the appellant's plea for another opportunity valid, emphasizing the importance of ensuring fair proceedings and justice. The Tribunal set aside the ex-parte order and directed the matter to be reconsidered by the CIT(Appeals) with the appellant being granted another chance to present his case. The Tribunal's decision highlights the significance of providing adequate opportunities for parties to be heard in tax proceedings, ensuring procedural fairness and upholding the principles of natural justice.

Overall, the judgment showcases the Tribunal's commitment to fairness and justice by allowing the appellant another opportunity to present his case before the CIT(Appeals) after addressing the issue of lack of proper opportunity. The Tribunal's decision to set aside the ex-parte order and remit the matter for fresh disposal demonstrates a balanced approach to resolving procedural irregularities while upholding the integrity of the appellate process. The appellant's compliance with the new hearing date without the need for further notices signifies a practical and efficient resolution to the procedural challenges faced in the initial appeal process. By treating the appeal as allowed for statistical purposes, the Tribunal acknowledges the importance of ensuring due process and equitable treatment for all parties involved in tax disputes.