NARESH C. JOSHI,VADODARA vs. ITO, CORPORATE WARD -12(1), CHENNAI

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ITA 3069/CHNY/2019Status: DisposedITAT Chennai25 February 2022AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that both the assessment order and the appellate order were passed ex-parte without providing a reasonable opportunity of being heard to the assessee, thus violating principles of natural justice.

What were the facts?

The assessee's appeal was dismissed by the CIT(A) ex-parte for non-prosecution, despite the assessee requesting a transfer of case records. The original assessment order was also passed ex-parte by the AO.

What were the issues?

Whether the lower authorities erred in passing ex-parte orders without affording reasonable opportunity of hearing to the assessee, thereby violating principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 144,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: SHRI MAHAVIR SINGHAND SHRI MANOJ KUMAR AGGARWAL

Hearing: 22.02.2022Pronounced: 25.02.2022

आदेश /O R D E R PER MAHAVIR SINGH, VP:

1.

This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-13, Chennai in order dated 05.07.2019. The assessment was framed by ITO, Non-Corporate Ward 12(1), Chennai for the relevant assessment year 2011-12 u/s.144

2 r.w.s.147 of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 12.12.2018.

2. At the outset, it is noticed that the assessment order dated 12.12.2018 is passed u/s.144 of the Act. We noticed from the assessment order that ex-parte assessment order u/s.144 of the Act was framed and only one hearing i.e., vide letter dated 07.08.2018 was provided before completion of assessment allowing only 5 days time. Secondly when the appeal was taken up by CIT(A), the CIT(A) decided the appeal by issuing 3 / 4 notices, as the assessee has not responded, the CIT(A) based on one argument that “Vigilantibus non dormientibus jura subveniunt” dismissed the appeal for non-prosecution. As the orders of the lower authorities are ex-parte and without providing opportunity of hearing, the assessee now before us has raised the grounds of violation of natural justice vide Ground Nos.1 & 2 s under:- “1. The Ld. Commissioner of Income Tax (Appeals)-13, Chennai has erred in law and in facts in dismissing the appeal of the appellant by an ex- parte order dated 05.07.2019 without affording reasonable opportunity of being heard and also ignoring the appellant’s request made by letter dated 16.04.2019 for transfer of case records to Vadodara consequent to shifting his residence there. The impugned order being in violation of principles of natural justice may please be set aside.

2.

The Ld. Commissioner of Income Tax (Appeals)-13, Chennai has further erred in law and in facts in the passing of the appellate order as a 3 non-speaking order without appreciating or considering the material on record.” 3. When these were pointed out to ld.Senior DR, he could not controvert the above factual situation.

4.

After hearing both the sides and going through the records, we set aside the orders of lower authorities i.e., ex-parte orders and remand the matter back to the file of the AO for fresh adjudication after allowing reasonable opportunity of being heard to the assessee.

5.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the court on 25th February, 2022 at Chennai.

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