SHREE SARDAR PATEL VISHWAVIDHYA SANSTHAN,RAJKOT (PEDHLA, JETPUR) vs. THE ITO (EXEMPTION) WARD-1, RAJKOT, RAJKOT

At the outset, on merit, Ld. Counsel for the assessee submitted that assessee resides in remote village and illiterate person, therefore notices were not served during assessment proceedings. Hence, assessee could not appear in assessment proceedings. On appeal, before Ld. CIT(A) by assessee, the Ld. CIT(A) dismissed appeal as ex parte without adjudicating on merit as the advocate appointed by assessee did not appear before Ld.CIT(A) and as a result, the Ld. CIT(A) has passed ex parte order. Therefore, Ld. Counsel contended that because of mistake of advocate of assessee, the assessee should not be penalized and therefore matter may be remitted back to the file of Assessing Officer for fresh adjudication.

The ld. DR of the Revenue has submitted that he did not have any objection if the matter is remitted back to the file of Assessing Officer, however, he contended that minimum cost of Rs.2,000/- should be imposed on assessee on account of non-compliance attitude of the assessee.

We have heard both the parties and gone through materials available on record. We note that in the assessee’s case under consideration, the assessment was carried out u/s 144 of the Act and the impugned order passed by the ld. CIT(A), is an ex parte order and non-speaking order, therefore, we do not wish to make any comments on the merits of the grounds raised by the assessee. We note that ld. CIT(A) has not decided the issue in respect of the ground raised by the assessee in Memo of Appeal as per the mandate of provisions of section 250(6) of the Act. The ld. CIT(A) has not examined assessment records and relevant documents and has not passed any speaking order. Considering the above facts, 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. On account of non-compliance attitude of the assessee a cost of Rs.2,000/- is imposed on the assessee. Accordingly, we hold that the interests of justice would be met, if the Assessing Officer re- adjudicates the entire issue afresh subject to payment of cost of Rs.2,000/- (Rupees two thousand only) by the assessee to the credit of the “Prime Minister Relief Fund” within 2 weeks from receipt of this order. If the assessee makes default in making the payment of cost then the consequential proceedings would be deemed, as vacation of our instant remand order. We set aside the order of CIT(A) and remit the matter back to the file of Assessing Officer with a direction to pass de novo assessment order in accordance with law after granting adequate opportunity of hearing to the assessee. The assessee is directed to be more vigilant and diligent and to furnish all the details and explanations as needed by the Assessing Officer by not seeking adjournment without valid reasons. With these directions, the grounds of appeal raised by the assessee are allowed for statistical purposes.