Facts of the Case

The assessee, Radha, 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 contended that adequate opportunity of hearing 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 being heard.
  3. Whether the appeal 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.
  • Non-appearance was 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 contended 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 was disposed of without proper adjudication on merits.
  • Effective opportunity of hearing must be granted before passing an adverse order.
  • Principles of natural justice are fundamental to appellate proceedings.

Important Clarification by the Tribunal

  • CIT(A) should decide appeals on merits rather than dismissing them for non-prosecution.
  • Procedural fairness is mandatory in appellate 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/1574674016-RADHA-136(CITA).pdf

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