The assessee preferred an appeal against the order passed by the National Faceless Appeal Centre for Assessment Year 2016–17, arising out of reassessment proceedings initiated under section 147 of the Income-tax Act, 1961. The assessee challenged the appellate order primarily on the ground that it was passed ex parte, without granting an effective opportunity of being heard.

The assessee further assailed the assumption of jurisdiction under section 147 for reopening the completed assessment and also contested the addition of ₹30,30,500 made by the Assessing Officer by invoking the provisions of section 69C of the Act. It was specifically pleaded that notices issued during the appellate proceedings were not effectively received, resulting in the assessee remaining unrepresented and being deprived of the opportunity to place submissions on merits.

Before the Tribunal, it was submitted that the assessee was keen to pursue the appellate proceedings diligently and undertook to extend full cooperation if one final opportunity was granted. A request was accordingly made for restoration of the matter to the file of the Commissioner (Appeals) for fresh adjudication in accordance with law.

The Tribunal observed that appellate proceedings are intended to advance substantive justice and that the right of appeal necessarily includes the right to an effective and meaningful hearing. Any adjudication made in violation of the principles of natural justice cannot be sustained. Considering the plea of non-receipt of notices and the fact that the appeal before the Commissioner (Appeals) was disposed of ex parte, the Tribunal held that the interests of justice warranted restoration of the matter.

Accordingly, without expressing any opinion on the merits of the reopening under section 147 or the addition made under section 69C, the Tribunal set aside the impugned appellate order and restored the entire matter to the file of the Commissioner (Appeals) for fresh adjudication after affording adequate and effective opportunity of hearing to the assessee. The assessee was also directed to cooperate fully and diligently pursue the appellate proceedings.

The appeal was thus allowed for statistical purposes.

Source Link- https://itat.gov.in/public/files/upload/1768214284-zd2Gfv-1-TO.pdf

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