Facts of the Case

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

The assessee contended that adequate opportunity of being heard was not provided and that there were valid reasons 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 valid.
  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.
  • Non-appearance was due to reasonable and bona fide circumstances.
  • The issues raised in appeal were not examined on merits.
  • Violation of principles of natural justice rendered the order invalid.

Respondent’s (Revenue’s) Arguments

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

Court Order / Findings (ITAT)

  • The appeal had been disposed of without proper consideration of the issues on merits.
  • Adequate and effective 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

  • Appellate authorities must decide appeals on merits wherever possible.
  • Dismissal for non-prosecution without examining issues is not appropriate.
  • Proper opportunity of hearing is a mandatory procedural requirement.

Link to download the order – Separate Source Link (as requested):
https://itat.gov.in/public/files/upload/1574659386-AJAY-12(CITA).pdf

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