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Income Tax Appellate Tribunal, CHANDIGARH
Before: SMT. DIVA SINGH & SHRI VIKRAM SINGH YADAV
आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,च�डीगढ़ �यायपीठ आयकर अपीलीय अिधकरण च�डीगढ़ �यायपीठ च�डीगढ़ �यायपीठ ‘‘बी च�डीगढ़ �यायपीठ बी.’’, च�डीगढ़ च�डीगढ़ च�डीगढ़ च�डीगढ़ बी बी IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’ CHANDIGARH BEFORE: SMT. DIVA SINGH, JUDICIAL MEMBER & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील अपील संसंसंसं./ आयकर आयकर आयकर अपील अपील Assessment Year : 2016-17 Shri Manoj Kumar, The ITO, बनाम Parkhan Street, Ward-2, VS Noharia Bazar, Sirsa. Sirsa. �थायी लेखा सं./PAN /TAN No: ABTPG0455H अपीलाथ�/Appellant ��यथ�/Respondent िनधा�रती क� ओर से/Assessee by : Shri Sudhir Sehgal, Advocate राज�व क� ओर से/ Revenue by : Shri Arvind Sudershan, JCIT तारीख/Date of Hearing : 17.01.2022 उदघोषणा क� तारीख/Date of Pronouncement : 19.01.2022 VIRTUAL HEARING आदेश आदेश/ORDER आदेश आदेश PER DIVA SINGH
The present appeal has been filed by the assessee wherein the correctness of the order dated 31.10.2019 of CIT(A) Hisar pertaining to 2016-17 assessment year is assailed on various grounds where the addition made by the AO has been sustained in appeal by the CIT(A).
However, at the time of hearing, considering the record, the parties advanced their arguments only in regard to the ITA 1588 /CHD/2019 A.Y. 2016-17 Page 2 of 4 issues addressed vide ground No. 2. The said ground reads as under:
“2. That the Ld. Commissioner of Income-tax (Appeals) has erred in deciding the appeal Ex-Parte without appreciating that the notice for hearing was sent through e-mail on dated 14-10-2019 and the hearing was fixed for 14-10-2019 at Hisar, i.e.around 100 km away from assessee place. Moreover, the counsel of the assessee also sent adjournment on dated 16-10- 2019, but the same was not considered.” 3. The ld. AR inviting attention to the impugned order submitted that the notices stated to have been sent to the assessee i.e. 16.08.2019 and 18.09.2019 were never received.
However, the notice sent by e-mail on 14.10.2019 was received.
Since by the said notice, the date of hearing was fixed as the very same day, the assessee had sent a reply thereto seeking time. Ignoring the said request, the ex-parte impugned order has been passed holding that the assessee is not serious in pursuing the appeal filed. In the circumstances, it was his limited prayer that the impugned order may be set aside back to the file of the ld. CIT(A) in order to afford the assessee an opportunity of being heard. On a query from the Bench, the ld. AR stated that he is willing to give his oral undertaking to ensure that the assessee shall participate in the proceedings in case remand is directed.
The ld. Sr.DR Mr. Arvind Sudershan had moved an adjournment application, however, considering the record and ITA 1588 /CHD/2019 A.Y. 2016-17 Page 3 of 4 the submissions, he agreed to orally withdraw the application filed and posed no objection to the request of remand.
We have heard the rival submissions and perused the material available on record. In the light of the prayer of the parties before the Bench, the impugned order is set aside back to the file of the CIT(A) with a direction to pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard.
5.1 For the purposes of completeness, it need be mentioned that in the facts of the present case, the appeal of the assessee has been dismissed by the First Appellate Authority relying upon the position of law as set out in CIT Vs Multiplan (India)
Ltd. 38 ITD (Del) 320; late Tukoji Rao Holkar Vs CWT (1997)
223 ITR 480 (Madhya Pradesh- Indore Bench) and CIT Vs. B.N.
Bhattachargee and another 118 ITR 461 (SC). The said procedure adopted, we note is contrary to the statutory provisions. Thus, we note that even otherwise, the impugned order is contrary to the statutory remit of the Income Tax Act.
Section 250 sub-section (6) of the Income Tax Act requires that “the order of the Deputy Commissioner (Appeals)] or, as the case may be, the Commissioner (Appeals)] disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision.” The said
ITA 1588 /CHD/2019 A.Y. 2016-17 Page 4 of 4 legal requirements, we have seen, are not fulfilled by the order passed.
Accordingly, in view of the above reasons and prayer, the remand is directed. It is hoped that the opportunity so provided to the assessee in good faith is utilized fairly and fully. It is made clear that in the eventuality of abuse of the trust reposed in the assessee, the CIT(A) would be at liberty to pass an order on the basis of the material available on record. The assessee in its own interests is directed to participate in the proceedings fairly. Said order was pronounced in the presence of the parties at the time of hearing itself via Webex.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 19 th January,2022.