Case Law Details
Vrajlal Umedlal Jhaveri Vs ITO (ITAT Mumbai)
Introduction: The appeal of Vrajlal Umedlal Jhaveri against the order dated 26.5.2023 by CIT(A)-National Faceless Appeal Centre, Delhi for A.Y. 2011-12 highlights a crucial issue. The appellant contends that the dismissal of the appeal without a merits-based assessment is unjust, considering the peculiar circumstances surrounding the notices issued.
Detailed Analysis: The learned counsel for the assessee argues that the CIT(A) hastily dismissed the appeal, citing the assessee’s non-response to notices. The key contention is that the notices were posted exclusively on the income tax portal, leaving the aged assessee unaware of their existence. The argument emphasizes the absence of physical notices and the resulting lack of awareness on the part of the appellant.
The Tribunal acknowledges the procedural lapse and observes that the CIT(A) could have conducted a merits-based evaluation using available records. Despite the procedural shortcoming, the Tribunal notes a violation of principles of natural justice due to the lack of proper hearing. Consequently, the Tribunal sets aside the CIT(A)’s order, restoring all issues for a fresh adjudication on merits.
Conclusion: In the interest of natural justice, the ITAT Mumbai grants Vrajlal Umedlal Jhaveri another opportunity to present the case properly before the CIT(A). The appeal is treated as allowed for statistical purposes, emphasizing the need for fair proceedings and cooperation between the assessee and the CIT(A) for the expeditious resolution of the appeal. The case sheds light on the evolving landscape of income tax proceedings, particularly in the context of digital communication and the obligation to ensure awareness on the part of the assessee.
This decision underscores the significance of balancing procedural compliance with the principles of natural justice in the evolving landscape of income tax proceedings. The outcome sets a precedent for cases where communication occurs solely through digital platforms, emphasizing the need for vigilant cooperation between tax authorities and assesses to ensure a fair and just resolution.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The assessee has filed this appeal challenging the order dated 26.5.2023 passed by the learned CIT(A)-National Faceless Appeal Centre, Delhi and it relates to A.Y. 2011-12.
2. At the outset, the learned counsel appearing for the assessee submitted that the learned CIT(A) has dismissed the appeal in limine, without deciding the issues urged before him on merits on the reasoning that the assessee did not respond to the notices issued by him. The Learned AR submitted that the assessee is an aged man and no physical notice was issued to him. All the notices were posted in the income tax portal and the assessee was not aware of those notices. Accordingly he prayed that, in the interest of natural justice, all the issues may be restored to the file of the learned CIT(A) for adjudicating them on merits.
3. We heard learned DR and perused the record. We noticed that the learned CIT(A) was constrained to dismiss the appeal in limine, since the assessee did not respond to the notices issued by him. It is the submission of learned AR that the notices were issued in the income tax portal and hence the assessee was not aware about them. Accordingly, it was submitted that the assessee could not comply to the notices issued by the learned CIT(A).
4. In our view, the Ld CIT(A) could have decided the issues on merits on the basis of material available on record. In any case, in the absence of proper hearing given to the assessee, there is violation of principles of natural justice. Accordingly, we are of the view that, in the interest of natural justice, the assessee may be provided with one more opportunity to present his case properly before the learned CIT(A).
5. Accordingly we set aside the order passed by the learned CIT(A) and restore all the issues to his file for adjudicating them on merits, after affording adequate opportunity of being heard to the assessee. We also direct the assessee to be vigilant and fully cooperate with the learned CIT(A) for expeditious disposal of the appeal.
6. In the result, the appeal filed by assessee is treated as allowed for statistical purposes.
Order pronounced in on 30.10.2023.
