2024 (7) TMI 29 - AT - Income Tax

Ex-parte order - notices could not be served upon the assessee during the appellate proceedings because of the change of address of the assessee - Assessee has further changed its address and the assessee is required to duly brought to the knowledge of the AO/CIT(A) regarding the change in address - HELD THAT - As considering the fact that the assessee could not present its case before the CIT(A) for want of service of notice and further considering the principles of natural justice that nobody should be condemned unheard we set aside the order of the CIT(A) with a direction to decide the appeal of the assessee afresh on merits. CIT(A) will give proper opportunity to the assessee to present its case before him including the explanations and evidences relating to the issue under consideration. CIT(A) may call upon a remand report from the AO in respect of evidences/explanations furnished by the assessee and thereafter to pass a speaking order in accordance with law. It is also directed that the assessee will furnish its correct address before the competent authority i.e. AO as well as CIT(A) along with email-id phone no. etc. upon which the notice will be duly served by the CIT(A) or the AO as the case may be. The assessee will make an application for change of address in the PAN Database as per rules. The assessee will comply with the aforesaid directions of providing correct address email-id phone no. etc. to the CIT(A) as well as to the AO within 60 days of the receipt of the copy of this order thereafter CIT(A) will fix the appeal for fresh hearing. If the assessee fails to furnish correct address as directed above CIT(A) will proceed to decide the appeal by serving notice at the address email-id as mentioned in Form 36 filed before us as reproduced above and in that event the assessee will be estopped from saying that the notices have not been served at the correct address. Appeal of the assessee is treated as allowed for statistical purposes.

Summary

Issues involved:
Service of notice, Ex parte order, Change of address, Principles of natural justice

Analysis:

1. Service of notice:
The appeal was filed against an order passed by the National Faceless Appeal Centre under section 250 of the Income Tax Act. The appellant argued that both the assessment order and the CIT(A) order were ex parte as the notices were not served properly. The appellant claimed that the address mentioned in the assessment order was incomplete and incorrect, leading to non-service of notices. The appellant also highlighted discrepancies in the email address mentioned in the return of income and the appeal Form 35. The Tribunal noted that the appellant had changed its address, which further complicated the issue of notice service during the appellate proceedings. Due to these reasons, the Tribunal set aside the CIT(A) order and directed a fresh hearing, emphasizing the principles of natural justice and the right to be heard.

2. Change of address:
The Tribunal observed that the appellant had changed its address, which resulted in notices not being served properly during the appellate proceedings. While acknowledging the appellant's responsibility to inform the authorities of address changes, the Tribunal emphasized the importance of providing correct address details to ensure proper service of notices. The Tribunal directed the appellant to furnish its correct address, email-id, and phone number to the Assessing Officer and CIT(A) within 60 days, failing which the CIT(A) would proceed with the appeal based on the address details provided in Form 36. The Tribunal stressed the significance of complying with the directions to avoid any future issues related to notice service.

3. Principles of natural justice:
In line with the principles of natural justice, the Tribunal emphasized the right of the appellant to present its case before the CIT(A) and be given a fair opportunity to provide explanations and evidence. The Tribunal highlighted that nobody should be condemned unheard, underscoring the importance of ensuring a proper hearing and due process. By setting aside the CIT(A) order and directing a fresh hearing, the Tribunal ensured that the appellant would have the opportunity to present its case effectively and address the issues under consideration.

Conclusion:
The Tribunal allowed the appeal for statistical purposes, emphasizing the need for proper notice service, addressing change of address issues, and upholding the principles of natural justice throughout the appellate process. The directions provided by the Tribunal aimed to ensure a fair and just hearing for the appellant, underscoring the significance of procedural fairness and compliance with address details to avoid future discrepancies.