SAMPAT DEVI AGARWAL,BIKANER vs. ACIT, CIRCLE-1, BIKANER

Having heard both the sides and perused the material available on record, we find that ld. CIT(A) has rejected the appeal of the assessee by observing that "the undersigned is left with no option but to decide the case on the basis of material available on record. Bear perusal of the facts shows that the appellant has not pursued the appeal despite being granted several opportunities. There has been total non compliance to all the notices issued. So, his contention raised vide grounds of appeal and the statement of facts cannot be taken on face value. Therefore, the above contentions of the appellant are without merit and are hereby rejected".

The Ld. CIT(A) has not mentioned the facts of the date of service of notices issued u/s 250 of the Act, on the assessee, so as to enable the assessee to present his submissions in defence of the claims made in the grounds of appeal. In the present case, the factum of service of notice of hearing on the assessee is neither mentioned nor inferred from the record that certainly tantamount to violation of principles of natural justice and debarred the assessee an adequate opportunity to argue it case before the CIT (A) on merits.

In our view, the Ld. CIT (A) ought to have adjudicated the appeal on merits after granting adequate opportunity by proper service of notice on the assessee and He deemed to have disproved the claim of the assessee by rebutting its contention with support of corroborative documentary evidence on record. The Hon'ble Supreme Court of India in the case of Tin Box Company vs. CIT reported in 249 ITR 216 in which their Lordships of Supreme Court of India observed as under: "Assessment - Opportunity of being heard - Setting aside of assessment - Assessment order must be made after the assessee has been given reasonable opportunity of setting out his case - Same not done - Fact that the assessee could have placed evidence before the first appellate authority or before the Tribunal is really of no consequence for it is assessment order that counts Assessment order set aside and matter remanded to assessing authority for fresh consideration."