INCOME TAX ACT, 1961

Section 251 read with Section 32

Appeal [CIT(A)] - Validity of claim of depreciation - Ex-parte order held to be as an application of income towards the income earned by assessee society -

Issue was as regards claim of depreciation, which was held to be as an application of income towards the income earned by the assessee-society. On appeal, CIT(A) passed an ex-parte order, which was contested by assessee. Held: As noticed CIT(A) passed an ex-parte order as nobody appeared on behalf of the assessee. On perusal of the order, it was also noticed that initially the appeal was fixed for hearing and was adjourned from time to time on various occasions, but none attended on behalf of the assessee. As noticed that throughout the assessee remained non-cooperative despite availing several opportunities, therefore, CIT(A) passed order, thereby taking into consideration the statement of facts and the material placed on record. It was the bounded duty of the parties, i.e., assessee as well as the Department to appear before the CIT(A). Assessee had not acted with due diligence. Nevertheless, the principles of natural justice demands that the lis between the parties should be decided on merits after providing due opportunity of hearing to both the parties. Order was set aside and matter was remanded back to the record of CIT(A) for deciding the appeal afresh on merits.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2012-13

SUBSCRIBE FOR FULL CONTENT

OR Try Reload the Page