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Facts
The assessee's appeal arises from an ex-parte order passed by the NFAC. The assessee's representative stated that notices were issued to the assessee on the ITBA portal but not via email, preventing their attendance. The Revenue objected, stating there was no evidence to support the non-appearance.
Held
The Tribunal held that the assessee has a right to be heard, and non-appearance cannot be a reason for the CIT(A) to not decide the appeal on merits. The right to be heard, as per Section 250(2)(a) and 250(6) of the Income Tax Act, is essential before an appeal can be disposed of.
Key Issues
Whether the CIT(A) was justified in passing an ex-parte order without ensuring proper service of notice and opportunity of hearing to the assessee? Whether the appeal should be remanded for a decision on merits?
Sections Cited
250(2)(a), 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE
Before: SMT. BEENA PILLAI & SHRI LAXMI PRASAD SAHU
IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE
BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER
ITA No. 827/Bang/2024 Assessment Year : 2017-18
M/s. D S Srinivasa Setty & Co., The Income Tax D.S. Srinivasa Setty And Co, Officer, 3rd Cross Nehru Road, Ward 1 & TPS, Garden Area, Shimoga. Shivamoga – 577 201. Vs. PAN: AAEFD9026D APPELLANT RESPONDENT
Assessee by : Shri Siddesh Nagaraj Gaddi, CA Revenue by : Shri Subramanian .S, JCIT (DR)
Date of Hearing : 05-06-2024 Date of Pronouncement : 12-06-2024
ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present penalty appeal arises out of order passed by the NFAC, Delhi dated 04.03.2024 for A.Y. 2017-18.
At the outset, the Ld.AR submitted that the order passed by the Ld.CIT(A) / NFAC is ex-parte order for the year under consideration. He submitted that various notices were issued to the assessee on ITBA portal. However, the same was not sent on
Page 2 of 4 ITA No. 827/Bang/2024 email of the assessee and therefore the assessee could not attend the hearing. The Ld.AR prayed for the appeal to be remanded in order to consider the claim on merits in the light of evidences filed by the assessee.
The Ld.DR objected to the prayer raised by the Ld.AR. He submitted that there is no evidences to substantiate the reason provided by the assessee for not appearing before the Ld.CIT(A). He thus prayed for the order of the Ld.CIT(A) to be confirmed.
We have perused the submissions advanced by both sides in the light of records placed before us.
We note that admittedly assessee did not appear before the Ld.CIT(A), though various opportunities were granted.
However, the assessee has “the right to be heard at the hearing of the appeal” and such a right cannot be put against the assessee. Before an appeal can be disposed of, a fair and reasonable opportunity of hearing is to be essentially extended to the assessee. The non-exercise of this right by the assessee cannot be a reason enough for the CIT(A)’s not dealing with the points so raised before him on merits.
5.1. The exercise of the “right to be heard at the hearing of the appeal” by “the appellant, either in person or by an authorized representative condition”, under section 250(2)(a), is not a condition precedent for the disposal of appeal on merits in
Page 3 of 4 ITA No. 827/Bang/2024 accordance with the scheme of Section 250(6). Therefore, irrespective of the non-appearance of the assessee before the CIT(A), the CIT(A) ought to have dealt with the issues so raised by the assessee on merits and to pass order by way of speaking order and in accordance with the law.
Accordingly, in the interest of justice, we deem it appropriate to remand the appeal back to the Ld.CIT(A) for necessary consideration. We direct the Ld.CIT(A) to issue the notice of hearing at following email ID submitted by the Ld.AR at the time of hearing: siddeshgaddi@yahoo.com The assessee is directed to furnish all relevant details in support of its claim, based on which Ld.CIT(A) is directed to pass a detailed order on merits after considering the evidences furnished by assessee. Needless to say that proper opportunity of being heard must be granted to the assessee. Accordingly, the grounds raised by the assessee stands partly allowed for statistical purposes. In the result, the appeal filed by the assessee stands partly allowed for statistical purposes. Order pronounced in the open court on 12th June, 2024.
Sd/- Sd/- (LAXMI PRASAD SAHU) (BEENA PILLAI) Accountant Member Judicial Member Bangalore, Dated, the 12th June, 2024. /MS /
Page 4 of 4 ITA No. 827/Bang/2024 Copy to: 1. Appellant 2. Respondent 3. CIT 4. DR, ITAT, Bangalore 5. Guard file 6. CIT(A) By order
Assistant Registrar, ITAT, Bangalore