Facts of the Case

The assessee, Naveen, filed an appeal before the Commissioner (Appeals) challenging the assessment order. The CIT(A) disposed of the appeal ex-parte due to non-appearance or alleged non-compliance by the assessee and dismissed the appeal without examining the grounds on merits.

The assessee submitted that adequate opportunity of being heard was not provided and that there were reasonable causes for non-appearance. Aggrieved by the dismissal, the assessee approached the Tribunal.

Issues Involved

  1. Whether the ex-parte dismissal of the appeal by the CIT(A) was legally sustainable.
  2. Whether the assessee was denied reasonable and effective opportunity of hearing.
  3. Whether the appeal should be restored for fresh adjudication on merits.

Petitioner’s (Assessee’s) Arguments

  • The assessee contended that the appeal was dismissed without granting effective opportunity.
  • Non-appearance occurred due to bona fide reasons.
  • The appellate authority failed to adjudicate the issues raised in the appeal.
  • The order violated principles of natural justice.

Respondent’s (Revenue’s) Arguments

  • The Department argued that sufficient opportunities had been provided.
  • The assessee failed to comply with notices issued by the CIT(A).
  • The appellate authority was justified in deciding the matter based on available records.

Court Order / Findings (ITAT)

  • The appeal had been disposed of without adjudication on merits.
  • Effective opportunity of hearing is mandatory before passing an adverse order.
  • Principles of natural justice must be strictly followed in appellate proceedings.

Important Clarification by the Tribunal

  • Appeals should ordinarily be decided on merits rather than dismissed for non-prosecution.
  • Procedural fairness is essential in quasi-judicial proceedings.
  • Orders passed without proper opportunity are liable to be annulled or remanded.

Link to download the order – https://itat.gov.in/public/files/upload/1574673536-NAVEEN-14(CITA).pdf

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