This document provides a detailed analysis of the Income Tax Appellate Tribunal’s final decision on the case between Shri Bhagwan, Rewari and ITO, Ward-3, Rewari, concerning the assessment year 2011-12. The case number is ITA 2603/DEL/2022, presided over by Judicial Member Shri C.M. Garg.
The appeal filed by the assessee, Shri Bhagwan, was directed against the order dated 04.03.2019 of the CIT(A), Rohtak, relating to Assessment Year 2011-12. The case was filed on 2022-10-26, and the final order was pronounced on 2022-12-12. The primary issue in this case was the ex parte assessment and dismissal of the appeal by the CIT(A) without giving due opportunity of being heard to the assessee.
During the hearing on 12.12.2022, the Revenue was represented by Shri Om Prakash, Sr. DR. The assessee did not appear, nor was any adjournment application filed. Despite the absence of the assessee, the Tribunal proceeded to adjudicate the appeal based on the materials on record.
The appeal was based on the grounds that the assessment order was passed ex parte by the Assessing Officer (AO) due to non-appearance by the assessee’s representative, and the CIT(A) dismissed the appeal in limine, applying the decisions of the Hon’ble Supreme Court in CIT vs. BN Bhattacharya (1997) 118 ITR 461 (SC) and the ITAT Delhi in CIT vs. Multiplan India Pvt. Ltd., reported in 38 ITD 320 (Delhi).
The Tribunal observed that both the AO and the CIT(A) passed ex parte orders without giving the assessee a final opportunity to present his case. The CIT(A) dismissed the appeal without deciding the grounds on merit, which is against the requirement of section 250(6) of the Income Tax Act.
The Tribunal noted that the ex parte orders were passed without providing due opportunity of being heard to the assessee, which is a violation of the principles of natural justice. The CIT(A) dismissed the appeal in limine without addressing the grounds raised by the assessee, which is not permissible under section 250(6) of the Act.
The Tribunal concluded that the assessee was not provided with due opportunity of being heard by the AO and the CIT(A). It set aside the impugned order of the CIT(A) and restored the appeal to the file of the AO for a de novo assessment, ensuring that the assessee is given a fair chance to present his case. The order stated:
Order pronounced in the open court on 12th December, 2022.
(C.M. GARG)
JUDICIAL MEMBER
This case highlights the importance of providing a fair hearing to the assessee and the requirement for the CIT(A) to adjudicate appeals on merit, rather than dismissing them in limine. The decision ensures that the principles of natural justice are upheld in tax proceedings.
The appellant, Shri Bhagwan, Rewari, challenged the ex parte assessment order passed by the AO and the dismissal of his appeal by the CIT(A) without addressing the grounds on merit. The case was restored to the AO for a fresh assessment after giving the assessee a fair opportunity to be heard.
The Revenue admitted that both the AO and the CIT(A) had passed ex parte orders and that the CIT(A) dismissed the appeal in limine without deciding the grounds on merit. The Revenue had no objection to restoring the case to the AO for a de novo assessment.
The Tribunal observed that the assessee was not given a fair opportunity to present his case, both at the assessment and appellate stages. The CIT(A) failed to address the grounds on merit, which is a requirement under section 250(6) of the Act.
The Tribunal’s decision in the case of Shri Bhagwan, Rewari vs ITO, Ward-3, Rewari, reaffirms the necessity of providing a fair hearing to the assessee and ensuring that appeals are adjudicated on merit. The restoration of the case to the AO for a de novo assessment ensures that the principles of natural justice are upheld in tax proceedings.
Final Tribunal Order for Shri Bhagwan, Rewari vs ITO, Ward-3, Rewari, Assessment Year 2011-12
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