2022 (1) TMI 936 - AT - Income Tax

Ex-parte order of CIT-A - violation of principle of natural justice - As contended assessee could not represent his case before Ld. CIT(A) and the order being an ex parte order, stood vitiated on account of violation of principle of natural justice - assessee submits that during the appellate proceedings, assessee could not receive the notice of hearing, therefore he could not appear before the ld. CIT(A - HELD THAT - We note that assessee has not given sufficient opportunity of being heard and could not plead his case successfully before the ld. CIT(A). We note that it is settled law that principles of natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest his case. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore the matter back to the file of Ld. CIT(A) for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. Therefore, we deem it fit and proper to set aside the order of the ld. CIT(A) and remit the matter back to the file of the ld. CIT(A) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed.

Summary

Issues:
1. Delay in filing the appeal for Assessment Year 2007-08.
2. Request to condone the delay in filing the appeal.
3. Violation of principles of natural justice in the appellate proceedings.

Analysis:
1. The appeal filed by the assessee for Assessment Year 2007-08 was delayed by 332 days. The assessee requested the Bench to condone the delay due to being a non-resident individual and not being in India to provide necessary documents on time, which led to the delay in filing the appeal.
2. The Departmental Representative objected to condoning the delay, citing strict adherence to provisions of the law. However, the Tribunal considered the circumstances and the principle of substantial justice. Referring to the case law of Collector, Land Acquisition vs Mst. Katiji, the Tribunal decided to condone the delay and admit the appeal for hearing.
3. The assessee contended that the order passed by the Commissioner of Income Tax (Appeals) was vitiated due to a violation of the principle of natural justice as the assessee could not represent the case before the Commissioner. The Tribunal acknowledged the importance of principles of natural justice and fair play, emphasizing the right to be heard. In the interest of justice, the Tribunal set aside the order and remitted the matter back to the Commissioner for de novo adjudication, directing a fresh hearing with sufficient opportunity for the assessee to present their case.

In conclusion, the Tribunal allowed the appeal for statistical purposes, considering the delay in filing the appeal and the violation of principles of natural justice in the appellate proceedings. The decision to condone the delay and grant a fresh hearing underscored the importance of upholding procedural fairness and ensuring a fair opportunity for the parties involved in the legal process.