2021 (7) TMI 1406 - AT - Income Tax

Order passed by the CIT(Appeals) ex parte - Non giving due opportunity of hearing to the assessee - as submitted that as per the return of income the assessee has duly paid the admitted tax shown in the return filed by the assessee also Form 26AS of the respective assessment years - HELD THAT - Admittedly in this case order was passed by the CIT(Appeals) ex parte without giving due opportunity of hearing to the assessee. Further the CIT(A) has not gone through the details of payment of admitted tax which is required to be verified by him after giving opportunity of hearing to the assessee in both the assessment years. Accordingly these appeals are remitted back to the file of the CIT(Appeals) for de novo consideration of the issues after providing opportunity of being heard to the assessee. Appeals of assessee are allowed for statistical purposes.

Summary

Issues:
Appeal against common order of CIT(Appeals) for assessment years 2012-13 & 2014-15.

Analysis:
1. The appellant raised grounds challenging the orders of authorities as being against law, equity, and facts, arguing that the CIT(A) passed a void order based on erroneous facts and law, violating natural justice. The appellant contended that the return filed in response to a notice was treated as non-est, hence no tax was payable, questioning the dismissal of the appeal for non-payment of tax under section 249[4] of the Act. The appellant also argued against the invocation of jurisdiction under section 153C of the Act, stating no undisclosed income was found during the search. Additionally, objections were raised regarding the completion of assessment under section 144 and the disposal of various additions.

2. The ITAT noted that the CIT(A) had passed an ex parte order without giving the assessee an opportunity to be heard. The appellant claimed to have paid the admitted tax as per the return of income and Form 26AS for the assessment years. The ITAT agreed with the appellant's request for a fresh hearing before the CIT(A) to verify the payment of admitted tax after providing an opportunity to present the case. Consequently, the appeals were remitted back to the CIT(A) for reconsideration of the issues after affording the assessee a proper hearing.

3. The ITAT allowed both appeals for statistical purposes, emphasizing the importance of providing a fair opportunity for the assessee to present their case and for the CIT(A) to verify the payment of admitted tax. The decision highlighted the procedural aspect of natural justice and the necessity for a thorough examination of facts before passing orders.

This detailed analysis of the judgment addresses the issues raised in the appeal, the grounds of challenge, and the ITAT's decision to remit the case back to the CIT(A) for a fresh consideration, ensuring due process and fairness in the adjudication process.