What did the Tribunal hold?

The Tribunal held that the FAA's ex parte order violated principles of natural justice. The assessee was not given a proper opportunity to be heard before the appeal was decided.

The assessee's appeal before the First Appellate Authority (FAA) was dismissed ex parte. The FAA issued three notices to the assessee, but received no response, leading to the dismissal.

What were the issues?

Whether the ex parte dismissal of an appeal by the First Appellate Authority without affording the assessee a proper opportunity to be heard violates principles of natural justice.

Meenakshi Sundareswaral, Madurai vs JCIT | ITAT Chennai 2024

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI AMITABH SHUKLA

Hearing: 20.05.2024Pronounced: 29.05.2024

आदेश / O R D E R

PER ABY T. VARKEY, JM:

This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/JCIT, (hereinafter ‘the Ld.CIT(A)’), Ludhiana, dated 09.02.2024 for the Assessment Year (hereinafter ‘AY’) 2017-18.

At the outset, the Ld.AR of the assessee pointed out that the First Appellate Authority [FAA] has passed an impugned ex parte order, since assessee didn’t bother to respond, despite ‘3’ notices were issued to him.

(AY 2017-18) Sri Meenakshi Sundareswaral :: 2 ::

Therefore, FAA was of the opinion that assessee was not interested/serious about the appeal and therefore, he was pleased to dismiss the appeal of the assessee by reiterating the decision of the AO.

According to the Ld.AR, the action of the First Appellate Authority is bad for violation of natural justice, and prayed for one more opportunity to be granted to the assessee; and also submitted that omission to comply / respond to the notices were not deliberate; and the Ld.AR also undertook to appear/represent before the First Appellate Authority given an opportunity. Though, the Ld.DR opposed for giving one more opportunity to the assessee, we are of the view that assessee must be heard before the Ld. First Appellate Authority decide the grounds of appeal as contemplated u/s.250(6) of the Income Tax Act, 1961 (hereinafter ‘the Act’). Therefore, we set aside the impugned order of the Ld.CIT(A) and restore the appeal back to the file of the First Appellate Authority and direct him to decide the grounds of appeal as envisaged in sub-section (6) of Sec.250 of the Act. Needless to say that the assessee be given proper opportunity and the assessee is directed to diligent and also directed to file written submissions/relevant documents to substantiate its claim before the First Appellate Authority; and the First Appellate Authority to pass a speaking order on the grounds of appeal raised by the assessee in accordance to law.

(AY 2017-18) Sri Meenakshi Sundareswaral :: 3 ::

In the result, appeal filed by the assessee is allowed for statistical purposes.

Order pronounced on the 29th day of May, 2024, in Chennai.

MEENAKSHI SUNDARESWARAL,MADURAI vs. JCIT, COR[PRATE CORC;E-1, MADURAI

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