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2018 (6) TMI 1644 - AT - Income TaxEx parte order of CIT(A) - CIT(A) confirmed the order of AO without deciding the same on merit. - Disallowance of interest on interest free advance - HELD THAT:- The principle of audi alteram partem is the basic concept of natural justice. The expression “audi alteram partem” implies that a person must be given an opportunity to defend himself. This principle is the sine qua non of every civilized society. The right to notice, right to present case and evidence, right to rebut adverse evidence, right to cross-examination, right to legal representation, the disclosure of evidence to the party, report of inquiry to be shown to the other party and reasoned decisions or speaking orders. We took this guidance for the right of hearing, from the ratio as is laid down by the Hon'ble Supreme Court in the case of Maneka Gandhi v. Union of India [1978 (1) TMI 161 - SUPREME COURT] wherein laid down that rule of fair hearing is necessary before passing any order. We find that it is pre-decision hearing standard of the norm of the rule of audi alteram partem. We find that in this instant case, the assessee was not given a proper hearing. Therefore, we are of the view that the assessee must be given one more opportunity of hearing and to represent his case. We also note that the assessee claimed not to have filed the copy of confirmation in respect of the loan obtained during the year before the AO at the time of assessment proceedings. Therefore, in exercise of the power conferred under Rule 28 of Tribunal Rules, we restore this appeal to the file of AO for reconsideration all grounds of appeal after allowing the proper opportunity of being heard by law. We are sending this appeal to the AO for fresh adjudication to avoid the multiplicity of the appeal. Nevertheless, to mention that the assessee will cooperate in the appeal proceedings and his failure will entail confirmation of the impugned addition made by the AO. The assessee will file necessary evidence on which he wants to rely upon at the time of the hearing. This ground of assessee’s appeal stands allowed for statistical purpose.
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