Facts of the Case

The assessee, Pinku, filed an appeal before the Commissioner (Appeals) against 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 adjudicating the grounds on merits.

The assessee contended that adequate opportunity of hearing was not provided and that there were reasonable causes for non-appearance. Aggrieved by the dismissal, the assessee preferred an appeal before 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 opportunity of being heard.
  3. Whether the matter should be restored for fresh adjudication on merits.

Petitioner’s (Assessee’s) Arguments

  • The assessee submitted that the appeal was dismissed without granting effective opportunity of hearing.
  • Non-appearance occurred due to bona fide reasons.
  • The issues raised in appeal were not examined on merits.
  • The order violated principles of natural justice.

Respondent’s (Revenue’s) Arguments

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

Court Order / Findings (ITAT)

  • The appeal was disposed of without adjudicating the issues on merits.
  • Effective and reasonable opportunity of hearing must be provided before passing an adverse order.
  • Principles of natural justice are fundamental to appellate proceedings.

Important Clarification by the Tribunal

  • Appeals should ordinarily be decided on merits rather than dismissed for non-prosecution.
  • Procedural fairness is mandatory 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/1574673639-PINKU-189(CITA).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.