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Facts
The assessee's appeal was dismissed by the Ld. CIT(A) ex-parte due to non-attendance. The assessee's counsel stated that the assessee demised before the hearing, and the legal heir was not fully aware of the proceedings.
Held
The Tribunal held that the Ld. CIT(A) should have passed an order on merits even without submissions from the assessee. In the interest of justice, the Tribunal set aside the order of the Ld. CIT(A) and restored the matter for fresh adjudication.
Key Issues
Whether the Ld. CIT(A) erred in dismissing the appeal ex-parte without considering the grounds of appeal on merits, especially considering the assessee's demise and the legal heir's subsequent representation.
Sections Cited
Income-tax Act
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Income Tax Appellate Tribunal, MUMBAI BENCH “D” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI SUNIL KUMAR SINGH
This appeal by legal heir on behalf of the assessee is directed against order dated 22.03.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2011-12, raising following grounds:
Late Darayas Pardiwala (On his behalf, Legal Late Darayas Pardiwala (On his behalf, Legal 2 Heir Pearl Unwalla) a. Ld. CIT(A) NFAC has grossly erred in dismissing the Appeal just based a. Ld. CIT(A) NFAC has grossly erred in dismissing the Appeal just based a. Ld. CIT(A) NFAC has grossly erred in dismissing the Appeal just based on non-attendance of the Appellant. attendance of the Appellant. b. Ld. CIT(A) NFAC ought to have perused the contentions raised by the b. Ld. CIT(A) NFAC ought to have perused the contentions raised by the b. Ld. CIT(A) NFAC ought to have perused the contentions raised by the Appellant in the Statement of Facts and Grounds of Appeal and Appellant in the Statement of Facts and Grounds of Appeal and Appellant in the Statement of Facts and Grounds of Appeal and adjudicated the same on merits. adjudicated the same on merits. c. Appellant therefore requests your Honor to kindly reman c. Appellant therefore requests your Honor to kindly reman c. Appellant therefore requests your Honor to kindly remand the Order to Ld. CIT (A) NFAC so as to enable the Appellant to attend the hearing with Ld. CIT (A) NFAC so as to enable the Appellant to attend the hearing with Ld. CIT (A) NFAC so as to enable the Appellant to attend the hearing with submissions on law as submissions on law as well as facts.
2. At the outset, the Ld. counsel for the assessee submitted that At the outset, the Ld. counsel for the assessee submitted that At the outset, the Ld. counsel for the assessee submitted that this order has been passed ex order has been passed ex-parte qua the assessee without the assessee without providing sufficient opportunity of being heard and therefore, viding sufficient opportunity of being heard and therefore, viding sufficient opportunity of being heard and therefore, appeal may be restored back to the file of the Ld. CIT(A) for deciding appeal may be restored back to the file of the Ld. CIT(A) for deciding appeal may be restored back to the file of the Ld. CIT(A) for deciding afresh.
We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the relevant material on record. The Ld. CIT(A) in para 2.1 has noted relevant material on record. The Ld. CIT(A) in para relevant material on record. The Ld. CIT(A) in para that he issued notice dated 30.12.2020 fixing the date of the that he issued notice dated 30.12.2020 fixing the date of the that he issued notice dated 30.12.2020 fixing the date of the hearing on 14.01.2021 hearing on 14.01.2021 but on said hearing, the assessee sought for the assessee sought for adjournment. Further, adjournment. Further, ld CIT(A) noted that the notice dated the notice dated 23.01.2022 issued by 23.01.2022 issued by him was also not responded. The was also not responded. Thereafter, another notice was issued after almost two years i.e. on 25.01.2024 issued after almost two years i.e. on 25.01.2024 issued after almost two years i.e. on 25.01.2024, which was also not responded. In the circumstances, the Ld. CIT(A) also not responded. In the circumstances, the Ld. CIT(A) also not responded. In the circumstances, the Ld. CIT(A) dismissed the appeal of the assessee for default on the part of the dismissed the appeal of the assessee for default on the part of the dismissed the appeal of the assessee for default on the part of the assessee. In our opinion, the Ld. CIT(A) is assessee. In our opinion, the Ld. CIT(A) is required to pass the order required to pass the order on merit even in absence of any submission on the part of the on merit even in absence of any submission on the part of the on merit even in absence of any submission on the part of the assessee. Further, the Ld. counsel for the assessee before us assessee. Further, the Ld. counsel for the assessee before us assessee. Further, the Ld. counsel for the assessee before us submitted that the assessee demised on 07.02.2022 and his legal submitted that the assessee demised on 07.02.2022 and submitted that the assessee demised on 07.02.2022 and heir were aware of the proceedings, heir were aware of the proceedings, therefore, could efore, could not respond
Late Darayas Pardiwala (On his behalf, Legal Late Darayas Pardiwala (On his behalf, Legal 3 Heir Pearl Unwalla) before the Ld. CIT(A) ). Now the assessee is being represented by the ow the assessee is being represented by the legal heir and he is willing to file required submissions and he is willing to file required submissions and he is willing to file required submissions. In view of the above facts and circumstances the above facts and circumstances of the case and in the interest of of the case and in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the we set aside the order of the Ld. CIT(A) and restore the we set aside the order of the Ld. CIT(A) and restore the matter back to him for deciding afresh after taking into matter back to him for deciding afresh after taking into matter back to him for deciding afresh after taking into consideration submission by the submission by the legal heir on record on behalf on record on behalf of the assessee. The grounds of appeal of the assessee are accordingly the assessee. The grounds of appeal of the assessee are accordingly the assessee. The grounds of appeal of the assessee are accordingly allowed for statistical purposes. for statistical purposes.
In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes.