Non-Issuance of Notice during Appeal u/s 250(1) is Procedural Irregularity: ITAT restores file to CIT(A) for Re-Adjudication

The Cuttack Bench of Income Tax Appellate Tribunal (ITAT) has held that non-issuance of notice during appeal u/s 250(1) is procedural irregularity and restores the file to CIT(A) for re-adjudication.

The revenue filed seven appeals against the assessment order passed by CIT (A) in respect of the assessee, M/s Kalinga Mining Corporation, for the assessment years.

The counsel for the revenue submitted that notice of hearing has not been issued to the AO. Section 250(1) of the Act specifically uses the words “shall give notice” to the appellant/assessee and to the AO against whose order the appeal is preferred. Hence, a procedural irregularity was committed at the stage of the hearing of appeals by the CIT(A). As there is a procedural irregularity caused, the same needs to be rectified.

The Tribunal observed that an opportunity of hearing as prescribed u/s.250(1) of the Act has not been provided by the CIT(A) to the AO and there is a clear violation of the principle of natural justice in respect of the opportunity to be given to the AO against whose orders the appeals have been preferred.

The Coram of Mr. George Mathan, Judicial Member, and Mr. Arun Khodpia, Accountant Member while restoring the file of CIT(A) for readjudication has held that “we are of the view that the orders of CIT(A) for all the impugned assessment years would have to be set aside on account of non-granting of opportunity of hearing to the AO as per the provisions of Section 250(1) of the Act and we do so”.

Advocate P.K. Jesthi appeared for the assessee and M.K. Gautam appeared for the respondent.

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