2020 (12) TMI 495 - AT - Income Tax

Dismissal of appeal by CIT-A - As argued as no proper opportunity of hearing give to assessee - non-prosecution of appeal - HELD THAT - CIT(A) has not given any categorical finding on merit of the case and dismissed the appeal on the ground of non-prosecution of appeal. As observed that the CIT(A) did not give sufficient opportunity of hearing to the assessee. CIT(A) was not right in dismissing the appeal of the assessee without giving proper opportunity of hearing. Hence, we are remanding back the entire issue to the file of the CIT(A) to be decided on merit. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. The appeal of the assessee is partly allowed for statistical purpose.

Issues:
Appeal against CIT(A) order - Ex-parte decision, Justification of assessment u/s 144/147, Non-compliance with opportunity of being heard, Order without considering adjournment application, Upholding addition of ?85,58,000, Confirming assessment order without proper opportunity, Grounds for appeal amendment.

Ex-parte Decision:
The appeal was filed against the CIT(A) order, arguing that the decision was ex-parte without deciding the appeal on merits, citing legal precedents. The Tribunal noted that the CIT(A) did not provide a categorical finding on the merits of the case and dismissed the appeal due to non-prosecution. The Tribunal found that the CIT(A) did not give sufficient hearing opportunity to the assessee, leading to a remand of the issue back to the CIT(A) for a decision on merit. The Tribunal emphasized the importance of providing a proper opportunity of hearing and following principles of natural justice.

Justification of Assessment u/s 144/147:
The grounds raised for justifying the assessment under sections 144/147 of the Income Tax Act were also challenged in the appeal. The Tribunal acknowledged the issues raised by the assessee and remanded the entire matter back to the CIT(A) for a decision on merit. The Tribunal highlighted the necessity of providing the assessee with a proper opportunity of being heard and ensuring compliance with the principles of natural justice.

Non-Compliance and Adjournment Application:
The appeal raised concerns about non-compliance and the CIT(A) passing an order without considering the assessee's application for adjournment due to delayed notice receipt. The Tribunal found merit in the assessee's arguments and remanded the issue to the CIT(A) for proper consideration. The Tribunal stressed the importance of giving due consideration to applications and providing opportunities for a fair hearing.

Upholding Addition of ?85,58,000:
The CIT(A) had upheld the addition of ?85,58,000 made by the Assessing Officer, which included various components like cash deposits in the bank, part payment of property purchase consideration, and deemed income assessment. The Tribunal, upon review, found discrepancies in the CIT(A)'s decision-making process and remanded the issue back for a fresh consideration on merit, emphasizing the need for a proper opportunity of hearing for the assessee.

Confirmation of Assessment Order:
The appeal contested the confirmation of the assessment order under sections 144/147 without providing the assessee with a proper opportunity. The Tribunal agreed with the assessee's contentions and remanded the matter back to the CIT(A) for a decision on merit, stressing the importance of fair hearings and adherence to procedural requirements.

Grounds for Appeal Amendment:
The appeal also sought leave to add, amend, or alter any grounds of appeal. The Tribunal allowed the appeal partly for statistical purposes, indicating a favorable consideration of the issues raised by the assessee. The decision was aimed at ensuring a fair and just process, including providing adequate opportunities for the assessee to present their case effectively.

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