2021 (10) TMI 165 - AT - Income Tax

Ex-parte order of the ld. CIT(A) in confirming the rectification order passed under section 154 - HELD THAT - Since there was no representation from assessee s side despite various opportunities afforded, the ld. CIT(A) dismissed the appeal of the assessee. On perusal of the appellate order, we do not find that the assessee has furnished detailed written submissions against the grounds raised in the appeal before the ld. CIT(A) so that the ld. CIT(A) could adjudicate the issues on merits. However, before us, the ld. Counsel for the assessee prayed for one more opportunity of being heard to the assessee for furnishing his explanation in support of his claim. In view of the above, we are of the opinion that to meet the ends of natural justice, one more opportunity may be given to the assessee to furnish details explanation in support of his claim - Assessee appeal allowed for statistical purposes.

Summary

Issues:
- Appeal against orders of the ld. Commissioner of Income Tax (Appeals) for assessment years 2014-15 and 2016-17.
- Dispute regarding ex-parte order confirming rectification order under section 154 of the Income Tax Act, 1961.
- Dismissal of appeal for want of prosecution by the ld. CIT(A).
- Request for directions to the ld. CIT(A) and opportunity for the assessee to present explanations.

Analysis:
1. The appeals were filed against orders of the ld. Commissioner of Income Tax (Appeals) for the assessment years 2014-15 and 2016-17. The assessee disputed the ex-parte order confirming the rectification order under section 154 of the Income Tax Act, 1961. Both appeals were heard together and disposed of by a common order for convenience.

2. The assessee filed the return of income for the assessment year 2014-15, and the assessment under section 143(3) of the Act was completed by accepting the returned income. Subsequently, a rectification order under section 154 of the Act was passed by assessing the total income at a different amount. The ld. CIT(A) dismissed the appeal for want of prosecution despite various opportunities afforded to the assessee.

3. The assessee appealed before the Tribunal, arguing that the ld. CIT(A) cannot dismiss the appeal for want of prosecution. The ld. Counsel for the assessee cited various court decisions and requested suitable directions to the ld. CIT(A). The ld. DR supported the decisions of the authorities below.

4. Upon review, it was observed that the assessee did not provide detailed written submissions against the grounds raised in the appeal before the ld. CIT(A). The Tribunal noted the absence of representation from the assessee's side and decided that another opportunity should be given to the assessee to furnish a detailed explanation in support of the claim before the ld. CIT(A). The appellate order was set aside, and the matter was remitted back to the ld. CIT(A) for a fresh decision after considering the submissions from the assessee.

5. Consequently, both appeals filed by the assessee were allowed for statistical purposes, emphasizing the importance of adhering to principles of natural justice. The order was pronounced in Chennai on 30th September 2021.