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Facts
The assessee failed to appear before the First Appellate Authority (FAA) despite receiving notices, leading to an ex-parte decision that confirmed the addition made by the Ld. Assessing Officer (AO). This procedural default necessitated the current appeal before the Income Tax Appellate Tribunal (ITAT).
Held
To uphold the principle of fair play and prevent a miscarriage of justice, the Tribunal remitted the case back to the CIT(A) for fresh consideration. The assessee is to be granted a further opportunity to be heard and present evidence, with the stipulation that non-cooperation would allow the CIT(A) to proceed strictly according to law.
Key Issues
Whether the assessee should be granted a fresh opportunity of being heard before the CIT(A) when the initial appeal was decided ex-parte due to the assessee's non-appearance.
Sections Cited
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Income Tax Appellate Tribunal, “SMC” BENCH, DELHI
Before: MS. MADHUMITA ROY
PER MADHUMITA ROY, JM: None appeared on behalf of the assessee at the time call, neither any adjournment application has been filed. It appears from the record that before the First Appellate Authority though number of occasions notices were served upon the assessee fixing the date hearing the assessee was not represented. Hence, having no other alternative the appeal was decided ex-parte confirming the addition made by the Ld. AO. However, keeping in view the principle of fair play and in order to prevent miscarriage of justice, we would like to grant further opportunity to the assessee to represent its case before the Ld. CIT(A). With the aforesaid Munni Lal alias Maniram Vs. ITO, ward 2(2)
observation the issue is remitted to the file of the CIT(A) for his consideration afresh upon granting an opportunity of being heard to the assessee and upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We also make it clear that in the event the assessee does not cooperate with the First Appellate Authority, the said authority would be at liberty to pass orders strictly in accordance with law.
The appeal of the assessee is allowed for statistical purposes.