CHIEF ENGINEER (CENTRAL ZONE),JABALPUR vs. DEPUTY COMMISSIONER OF INCOME TAX (TDS), JABALPUR

The learned C.I.T. (Appeal) has not appreciated that order has been pass by DCIT Circle 1(1) by violating rules of natural justice.

The learned C.I.T. (Appeal) has not appreciated that no notice of hearing was received by the Applicant and decided the case ex party which is by violating rules of natural justice.

The learned Commissioner of Income Tax (Appeal) failed to appreciate the Application u/s 154 was dismissed on technical grounds without going into the merits of the case.

The learned Commissioner of Income Tax (Appeal) erred in law in ignoring the CBDT Circular no 007 dt 14-03-2015 where it is directed that no late fee cannot levied to Government.

The ld. CIT(A) erred in law in not appreciating that levy of interest is unjustified.

By virtue of the impugned order, the ld. CIT(A) has dismissed the assessee’s appeal for non-prosecution. We take note that the ld. CIT(A) had issued only one notice, dated 11/6/2018, but none appeared on behalf of the assessee before the ld. CIT(A) and the ld. CIT(A) dismissed the appeal of the assessee ex-parte qua the assessee. Such service of notices has, however, been disputed by the assessee.

Heard. I find that the CIT(A) has dismissed the appeal without providing proper opportunity to the assessee. Moreover, he has not decided the appeal after discussing in detail, his reasons for agreeing with the assessment order. The assessee has taken a specific ground with regard to non-service of notice on the assessee. As such, another opportunity of hearing requires to be given to the assessee to represent his case fully before the ld. CIT(A). Even otherwise, it is trite [‘S. Velu Palandar Vs. DCIT’ 83 ITR 683 (Mad.)] and incumbent on the ld CIT(A) to decide an appeal on merit even in the absence of any representation before them.

In view of the above, the matter is remitted to the file of the ld. CIT(A) to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the assessee. The assessee, no doubt, shall cooperate in the fresh proceedings before the ITA No.157/JAB/2018 ld. CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly.

In the result, for statistical purposes, the appeal is treated as allowed. Order pronounced in the open Court on 04/04/2019. [T. S. KAPOOR] [A. D. JAIN] ACCOUNTANT MEMBER VICE PRESIDENT