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Facts
The assessee appealed against an ex-parte order passed by the CIT(A) for AY 2010-11, which was made without considering their submissions. The assessee's representative furnished affidavits from a Director and their advocate, explaining that non-appearance before the CIT(A) was due to the advocate's bonafide pre-occupations.
Held
The Tribunal found that the ex-parte disposal violated principles of natural justice as the assessee's submissions were not heard. Therefore, the appeal was restored to the CIT(A) for de novo adjudication, with directions for the assessee to be given a reasonable opportunity of being heard and to cooperate with the proceedings.
Key Issues
Whether an ex-parte order passed by the CIT(A) without considering the assessee's submissions, despite bonafide reasons for non-appearance, constitutes a violation of natural justice.
Sections Cited
Section 143(3) of the Income-tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI M. BALAGANESH
O R D E R PER M. BALAGANESH, A. M.: The appeal in AY 2010-11, arises out of 1. the order of the Commissioner of Income Tax (Appeals)-37, New Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 26.12.2017 by the Assessing Officer, ITO, Ward-23(2), New Delhi (hereinafter referred to as ‘ld. AO’).
At the outset, we find that the order of ld CIT(A) was passed exparte without considering the submissions of the assessee. The ld AR before us had placed on record an affidavit from the Director of the assessee company explaining the reason for non-appearance. This affidavit is also supported by an affidavit from the Advocate who was engaged to represent before the ld CIT(A) and the said Advocate had stated in the affidavit that due to his pre-occupations, he could not be Page | 1 Shiva Commodities Pvt. Ltd present before the ld CIT(A) for arguing the appeal. Hence it is conclusively proved that the ld CIT(A) had disposed of the appeal exparte without deciding the grounds of merits, thereby resulting in violation of principles of natural justice. Hence we deem it fit and appropriate, in the interest of justice and fair play, to restore this appeal to the file of ld CIT(A) for denovo adjudication in accordance with law. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is at liberty to furnish fresh evidences, if any, in support of its contentions. The assessee is also directed to co-operate with the ld CIT(A) by not taking adjournments except due to bonafide or exceptional circumstances. With these directions, the appeal is restored to ld CIT(A) and grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 26/11/2024.