SASIKALA,CHENNAI vs. INCOME TAX OFFICER, NON CORPORATE WARD

This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Income Tax Department, National Faceless Appeal Centre (NFAC), Delhi, dated 25.10.2023, and pertains to assessment year 2020-21.

The brief facts of the case are that the assessee is an individual filed his return of income for AY 2020-21 on 31.03.2021 declaring total

Being aggrieved by the assessment order, the assessee preferred an appeal before the Ld.CIT(A). During the course of appellate proceedings, the Ld.CIT(A) posted the case for hearing on three occasions, but no compliance from the assessee. Therefore, the Ld.CIT(A) disposed off appeal filed by the assessee ex parte for non- prosecution and upheld additions made by the AO towards disallowance of deductions claimed u/s.54F of the Act. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before us.

The Ld.Counsel for the assessee, Shri S. Seetharaman, CA, submitted that although, the assessee did not respond to first two dates of hearing, but when the appeal was posted on the third time on 25.10.2023, the assessee has filed a letter dated 25.10.2023 and sought for adjournment on medical grounds. However, the Ld.CIT(A) without considering the letter filed by the assessee seeking for adjournment of ITA No.1334/Chny/2023 :: 3 ::

The Ld.DR present for the Revenue, fairly agreed that the appeal may be set aside to the file of the Ld.CIT(A) to give one more opportunity of hearing to the assessee to explain his case.

We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. The principles of natural justice demands that the appellate authority should provide sufficient opportunities to the assessee to furnish necessary evidences and to justify their case. The meaning thereby is that when the assessee seeks adjournment by way of written letter with a reason, it is the duty of appellate authorities to consider the request of the assessee and post the case for hearing in any other convenient date. In the present case, although, the assessee has filed a letter on 25.10.2023, i.e. on the date the appeal was fixed for hearing, seeking adjournment on medical grounds, but the Ld.CIT(A) without considering the request of the assessee, disposed off appeal on 25.10.2023 for non- prosecution and also not decided the issues on merits in gross violation of principles of natural justice. Therefore, we are of the considered view that the appeal needs to go back to the file of the Ld.CIT(A) to give one more opportunity of hearing to the assessee. Thus, we set aside the appeal to the file of the Ld.CIT(A) with a direction to re-adjudicate the issue on merits after providing a reasonable opportunity of hearing to the assessee. Needless to say, the assessee shall appear before the Ld.CIT(A) as and when the appeal is called for hearing and also file necessary details without seeking any adjournment.

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