Facts of the Case

The present writ petition was filed challenging the order dated 27th February 2020 passed by the Income Tax Appellate Tribunal (ITAT) in Miscellaneous Application No. 183/2019. The petitioner also sought a direction to the ITAT to hear the said Miscellaneous Application afresh.

The petitioner contended that the impugned order was passed without mentioning the matter in the cause list, due to which he was unable to present his case, causing grave prejudice.

It was submitted that the matter was heard on 14th February 2020 and listed for further hearing on 28th February 2020. However, on 28th February 2020, the petitioner was informed that the case had already been heard on 21st February 2020 and dismissed on 27th February 2020.

Issues Involved

  1. Whether passing an order without proper listing of the case in the cause list violates principles of natural justice.
  2. Whether the petitioner was denied a fair opportunity of hearing.
  3. Whether the ITAT’s order dated 27th February 2020 is liable to be set aside on grounds of procedural irregularity.

Petitioner’s Arguments

  • The impugned order was passed without proper listing in the cause list.
  • The petitioner did not receive adequate and fair opportunity to present his case.
  • The petitioner acted under a bona fide belief that the matter would be heard on 28th February 2020 as indicated earlier.
  • The absence of the matter from the cause list caused serious prejudice and violated natural justice.

Respondent’s Arguments

  • The Revenue submitted that it had no specific instructions but acknowledged inconvenience caused due to non-publication of cause lists.
  • ITAT clarified through communication that:
    • The matter was adjourned to 21st February 2020.
    • Due to clerical error, it was not reflected in the cause list.
    • The matter was included in a revised list displayed on the notice board.
    • Since no one appeared for the assessee, the matter was heard and order passed.

Court’s Findings / Order

  • Although the matter had been adjourned to 21st February 2020, the petitioner did not have adequate notice or fair opportunity to represent his case.
  • Neither the daily order sheets nor the revised cause list had been uploaded on the ITAT website.
  • This lack of transparency resulted in denial of a fair hearing.

Order:

  • The impugned order dated 27th February 2020 was set aside.
  • ITAT was directed to hear the Miscellaneous Application afresh.
  • ITAT was further directed to:
    • Upload daily order sheets
    • Upload revised cause lists on its website
    • Establish a proper system within three months

The writ petition was disposed of with these directions.

Important Clarification

  • Even if a matter is internally listed or displayed physically, non-publication on the official website can result in denial of fair opportunity.
  • Administrative or clerical errors cannot override fundamental procedural fairness.
  • Courts emphasize transparency in judicial/quasi-judicial functioning, especially in tax matters.

Sections Involved

  • Principles of Natural Justice (Audi Alteram Partem)
  • Proceedings relating to Income Tax Appellate Tribunal (ITAT)
  • Miscellaneous Application under Income Tax proceedings

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2021:DHC:2166-DB/MMH23072021CW63702021_231855.pdf

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