The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) set aside the order passed by the Commissioner of Income Tax(Appeals)[CIT(A)], due to failure to provide a fair hearing to the assessee and remanded the case for fresh adjudication.
Kamlesh Babalal Shah,appellant-assessee, challenged the order dated 7.2.2023 passed by the CIT(A), National Faceless Appeal Centre (NFAC) for the Assessment Year 2016-17.
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The assessee stated that due to a change in consultants handling tax compliance and audit, there was confusion between the authorized persons, resulting in non-attendance at hearings on 02.01.2023 and 21.01.2023. The absence was not negligent or intentional, and the assessee, who had no pending dues or litigation, was known for cooperation in legal matters.
It was argued that the CIT(A) did not provide a proper hearing opportunity or serve the notices correctly, and the appeal was dismissed without considering the grounds or statements of facts. The assessee reserved the right to amend or add to these submissions.
The assessee’s main concern was that the CIT(A) did not provide a proper hearing or serve the notices correctly. As a result, the ex parte order was seen as a violation of natural justice, and the assessee requested another opportunity to present their case before the first appellate authority.
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The tribunal, after reviewing the case and hearing both sides, found that the CIT(A) issued a brief order stating that three notices were sent to the assessee but went unanswered, leading to the conclusion that the assessee was not pursuing the appeal. It pointed out that this violated Section 250(6) of the Act, which requires a detailed order with reasons for the decision.
It also noted that the CIT(A) did not consider the materials already on record and dismissed the appeal based on the non-receipt of the notices, which the assessee disputed. This was deemed a violation of natural justice, as the assessee was not given a fair opportunity to present their case.
The two member bench comprising Pawan Singh(Judicial Member) and Annapurna Gupta(Accountant Member) therefore set aside the order and remanded the case to the CIT(A) for a fresh hearing, instructing that the assessee be given a fair opportunity to be heard. The assessee was also advised to cooperate and avoid unnecessary adjournments.
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