SCORPIO IRON LTD,PANAJI vs. JCIT, RANGE - 1, PANAJI

This appeal preferred by the assessee emanates from the order of Commissioner of Income Tax (Appeals)-1, Panaji, (for short, ‘CIT(A)’), dated 11.09.2020 as per the grounds of appeal on record.

We have heard ld.DR and perused the material available on record. We find that ld. CIT(A) has passed an ex-parte order and the Scorpio Iron Ltd. rights and liabilities of the parties herein were not adjudicated on merits. That on perusal of Para 3 of the ld. CIT(A)’s order, it is seen that the assessee or its authorised representative neither appeared nor submitted any letter seeking adjournment in response to the notices issued.

That further it is evident from Para 4 of the order of ld. CIT(A)’s that it had decided the appeal considering the statements of facts, grounds of appeal and material on record. The process of judicial adjudication requires Quasi-Judicial authority to adjudicate the case on merits and come out with a speaking order. In the present case, the ld. CIT(A) was unable to do so because of the evasive nature of the assessee. However, keeping in mind the principles of natural justice and the very fact, the Income Tax Act is welfare legislation; we are of the considered view that one final opportunity should be given to the assessee to represent its case on merits. Therefore, the assessee is directed to present itself through its authorised representative before the ld. CIT(A) immediately on receipt of this order along with relevant/ necessary documents to present its case on merits before the ld.CIT(A) and he shall adjudicate the same by passing a speaking order while complying with the principles of natural justice. Issuance of any further notice to assessee is dispensed with. In view of the aforesaid directions, we set aside the order of the ld. CIT(A) and remand the matter back to his file.