PROGRESSIVE ALLOYS(INDIA) PVT.LTD.,DELHI vs. ITO WARD 20(1), DELHI

Facts

The assessee's appeals for A.Y. 2013-14 and 2017-18 were summarily dismissed by the CIT(A) due to non-prosecution, confirming the Assessing Officer's orders. The assessee subsequently appealed to the Tribunal, raising grounds related to natural justice (audi alteram partem) despite repeatedly failing to appear before the CIT(A).

Held

The Tribunal acknowledged the assessee's right to appeal but emphasized the responsibility to comply with notices. While not preempting the assessee's grievance, the Tribunal observed that the assessee's conduct was burdening the justice system. Therefore, the Tribunal directed the assessee to pay Rs. 5,000/- to the Prime Minister's National Relief Fund and remanded the case to the CIT(A) for a fresh hearing, with specific instructions to provide the assessee an opportunity of being heard.

Key Issues

Whether the CIT(A) can dismiss an appeal for non-prosecution without affording a proper opportunity of hearing, especially when the assessee later invokes the principle of "audi alteram partem." The issue also involves balancing the assessee's right to appeal with their responsibility to cooperate with tax authorities.