2019 (5) TMI 791 - AT - Income Tax

Dismissing the appeal ex-parte - non affording an opportunity of hearing - denial of Principals of Natural Justice - HELD THAT - Admittedly, specific opportunity was provided by the A.O. In the appellate proceedings, we note that the dates of hearing had been mentioned. However, the mode of communicating the same to the assessee is not found discussed. Further taking note of the impugned order it is seen that it has been dismissed on the grounds of non-representation, relying upon the decision of the Hon'ble Apex Court in the case of B.N. Bhattachargee Other 1979 (5) TMI 4 - SUPREME COURT Considering the same we find that the procedure followed by the CIT(A) is not as per the statutory mandate, as set out in sub-section(6) of section 250. Further taking note of the fact that the necessary evidence is to be considered by the A.O., accordingly, in the light of the submissions of the parties before the Bench, accepting the oral undertaking given by the Ld. AR, the impugned orders are set aside and the issues are remanded back to the file of the A.O. with the direction to pass a speaking order in accordance with law. - Appeals of the assessee are allowed for statistical purposes.

Summary

Issues:
- Correctness of orders dated 29.6.2018 of the CIT(A)-3, Gurgaon for 2011-12 and 2012-13 assessment years.
- Ex-parte dismissal of appeal by the Ld. Commissioner of Income Tax (Appeals) without affording an opportunity of hearing.
- Request for adjournment application by the assessee to file a Paper Book.
- Failure of the assessee to participate in the proceedings.
- Issue of non-representation leading to dismissal of appeals.
- Request for remand of issue to the A.O for necessary verification of evidences.
- Compliance with statutory mandate under sub-section(6) of section 250 of the Income Tax Act, 1961.
- Setting aside of impugned orders and remanding issues back to the A.O with directions for a speaking order.
- Granting an effective and reasonable opportunity of being heard to the assessee.
- Consequences of abuse of trust reposed on the assessee by the A.O.

Analysis:
The judgment concerns two appeals filed by the assessee challenging the correctness of separate orders dated 29.6.2018 of the CIT(A)-3, Gurgaon for the 2011-12 and 2012-13 assessment years, with a common ground of appeal against the ex-parte dismissal without a hearing. The assessee had requested an adjournment to file a Paper Book, but the adjournment was rejected due to the ex-parte nature of the order. The Ld. AR argued that the assessee's appeals were dismissed for non-representation, claiming the correct address but possible non-receipt of notices for specific dates. The issue was restored for further proceedings after hearing the ld.CIT DR, with the Ld. AR requesting a remand to the A.O due to the lack of necessary evidences on record. The judgment noted that the A.O provided specific opportunities, but the mode of communication to the assessee was not detailed. The dismissal based on non-representation was found not in line with statutory requirements under section 250 of the Income Tax Act, 1961. Consequently, the impugned orders were set aside, and the issues were remanded to the A.O for a speaking order, ensuring a fair hearing for the assessee. The A.O was directed to consider necessary evidence and grant a reasonable opportunity of being heard, with a warning that abuse of trust would allow the A.O to proceed based on available records. Both appeals were allowed for statistical purposes, emphasizing the importance of due process and fair representation in tax proceedings.