In ITA No.368/SRT/2023 -ITAT- ITAT (Surat) restores matter to AO for de novo adjudication after finding taxpayer was not given fair hearing
Member A.L. Saini (Accountant) [22-08-2023]

Read Order: Kamlesh Jethmal Shah v. Income Tax Officer

Chahat Varma

New Delhi, August 28, 2023: The Surat bench of the Income Tax Appellate Tribunal has restored a matter to the file of the Assessing Officer (AO) for de novo adjudication after finding that the taxpayer had not been given a fair hearing by the Commissioner of Income Tax (Appeals) [CIT(A)].

In the present case, the assessee had raised several grounds of appeal, contending that the CIT (A) had made errors in confirming the penalty imposed by the AO under Section 271(1)(c) of the Income Tax Act. It was argued that the CIT (A) had passed the order without granting sufficient opportunities for the assessee to present their case. It was contended that the order being an ex-parte order, stood vitiated on account of violation of principle of natural justice.

The single-member bench of A.L. Saini (Accountant) noted that the assessee had submitted an adjournment application. However, the NFAC/CIT (A) did not grant the requested adjournment. Consequently, the assessee was unable to submit the necessary documents and evidence before the CIT (A). This resulted in the CIT (A) passing the impugned order in an ex-parte manner.

The bench observed that the assessee was not given an opportunity to present their case properly, and the NFAC/CIT (A) did not consider the assessee's case on its merits. This was a violation of the principles of natural justice. The bench held that it was a well-established law that the principles of natural justice and fair play require that all parties be given a reasonable opportunity to be heard before any decision is made that could affect their rights.

With the above observations, the bench restored the matter back to the file of AO.