Facts of the Case

The assessee filed an appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, for Assessment Year 2014-15. When the matter came up before the Tribunal, none appeared on behalf of the assessee; however, an adjournment application citing sickness and hospitalization had been submitted.

The record revealed that the CIT(A) had issued multiple notices of hearing. The matter was last fixed for hearing on 13.01.2023. The assessee filed an adjournment request for that date. However, the CIT(A) passed the impugned order on 12.01.2023 — one day prior to the scheduled hearing date — disposing of the appeal ex-parte based on material available on record.

 Issues Involved

Whether an appellate order passed by CIT(A) prior to the scheduled hearing date, despite a pending adjournment request, violates principles of natural justice and is legally sustainable.

 Petitioner’s (Assessee’s) Arguments

·         The assessee had sought adjournment due to illness and hospitalization.

·         The appeal was decided without granting effective opportunity of hearing.

·         Passing the order before the scheduled hearing date deprived the assessee of the right to present the case.

Respondent’s (Revenue’s) Arguments

The Departmental Representative did not dispute the factual position that the impugned order had been passed prior to the scheduled date of hearing.

 Court Order / Findings (ITAT)

·         The matter was listed for hearing on 13.01.2023.

·         The CIT(A) passed the order on 12.01.2023, i.e., before the hearing date.

·         The assessee was not given any opportunity to pursue the adjournment application or argue the appeal.

·         Such action constitutes a clear violation of principles of natural justice.

Accordingly, the Tribunal held that the impugned order could not be sustained in law. The order of the CIT(A) was set aside, and the matter was remanded for fresh adjudication after providing appropriate opportunity of hearing to the assessee.

Important Clarification

·         An appellate authority cannot pre-emptively dispose of an appeal before the scheduled hearing date.

·         Adequate opportunity of hearing is a fundamental requirement of fair procedure.

·         Even in faceless proceedings, adherence to natural justice is mandatory.

·         Orders passed in violation of due process are liable to be set aside irrespective of merits.

Link to download the order   https://itat.gov.in/public/files/upload/1678968017-ITA%20No.%2012%20Alld%202023%20Jai%20Prakash%20Singh.pdf  

 Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.