SHRI ANIL TAKALKAR,DEWAS vs. THE ITO, DEWAS

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ITA 278/IND/2017Status: DisposedITAT Indore26 May 2017AY 2009-103 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the principle of audi-alterem partem (natural justice) was violated as the assessee was not given a proper opportunity of being heard. The appeal was therefore restored to the CIT(A) for a fresh hearing.

What were the facts?

The assessee appealed against the CIT(A)'s order sustaining an addition of Rs. 3,07,712/- for disallowance of expenditure. The assessee contended that no opportunity of hearing was provided by the CIT(A).

What were the issues?

Whether the CIT(A) erred in rejecting the appeal ex parte without providing a proper opportunity of hearing to the assessee, thereby violating principles of natural justice.

Which sections of the Income-tax Act were involved?

Rule 28

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI C.M.GARG & SHRI O.P.MEENA

Hearing: 24.05.2017

आदेश /O R D E R

PER O.P.MEENA, ACCOUNTANT MEMBER: 1. This appeal is filed by the assessee against the order of learned Commissioner of Income tax (Appeals)-, Ujjain, [in short referred to as the CIT (A)] dated 06.01.2017 for assessment year 2009-10 on the sole grounds of appeal as under:- That the Ld. CIT(A) has erred in sustaining the addition of Rs. 3,07,712/- for disallowance of expenditure. 2. At the outset, the Ld. AR submitted that no opportunity of hearing was offered to the assessee hence, the Ld. CIT(A) was not

Anil Takalkar vs. ITO, Dewas/ I.T.A. No.278/Ind/2017/A.Y.:09-10 Page 2 of 3

justified in rejecting the appeal of the assessee ex parte therefore, it was prayed that the appeal be restored to the file of Ld. CIT(A) with a direction of proper opportunity of being heard may be allowed to the assessee. On the other hand, the Ld. Sr. DR has no objection if the matter is restored to the file of the Ld. CIT(A). 3. We have heard the rival submissions and find that the Ld. CIT(A) has not allowed proper opportunity of being heard. The principle of audi-alterem partem is the basic concept of natural justice. The expression “audi-alterem partem” implies that a person must be given an opportunity to defend himself, this principle is sine-qua-non of every civilized society. The right to notice, right to present case and evidence, right to rebut adverse evidence, right to cross-examination, right to legal representation, disclosure of evidence to parties, report of enquiry to be shown to the other party and reason or decision or speaking order is imperative requirement of the law. The view is found support from the decision of the Hon'ble Supreme Court in the case of Maneka Gandhi vs. Union of India wherein it was held that rules of fair hearing is necessary before passing any order. We find that in the instant case, the assessee was not given proper hearing and the appeals wear decided ex parte. Therefore, we are of the view that the assessee must be given one more opportunity of being heard and to represent his case. Therefore, in exercise of power conferred under Rule 28 of Tribunal Rules, we restore this appeal to the file of Ld. CIT(A) for allowing proper opportunity of being heard in accordance with law. Nevertheless, to mention that the assessee will cooperate in appeal proceeding and furnish

Anil Takalkar vs. ITO, Dewas/ I.T.A. No.278/Ind/2017/A.Y.:09-10 Page 3 of 3

necessary evidence for which he wants to rely. Accordingly, the issue set aside of the file of the CIT(A). 4. In the result, the appeal of the assessee is allowed for statistical purpose. 5. This order has been pronounced in the open court on 26.05.2017

Sd/- Sd/-

(C.M. GARG) (O.P.MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER

Dated: 26.05.2017 Sb*

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