Case Law Details
Brief of the case:
ITAT Delhi held in Executive solutions Pvt Ltd Vs ITO that reasonable opportunity of being heard should be given to the assessee as per the principle of natural justice irrespective of the fact the number of times opportunity of being heard had already been given to the assessee.
Moreover revenue should consider the submissions of the assessee considering the circumstances of the case though not submitted in the prescribed manner because of the principle of natural justice.
Facts of the case:
An order was passed by AO u/s 143(3)/147 by making an addition of Rs 13,50,000/ on account of unexplained cash credit which was challenged in appeal with CIT(A) who had given many reasonable opportunities of being heard to the assessee but on the day of hearing the CA of assessee was unable to present himself because of illness but the submissions of assessee was presented before the CIT(A) on the basis of which the additions might get deleted or the order might be recalled which CIT(A) refused to submit just because the same were not submitted as per the prescribed rules.
Contention of the assessee:
Assessee was of the view that as the CIT(A) had passed its order u/s 250 ex-parte without giving reasonable opportunity of being heard to the assessee which was unlawful and against the law of natural justice.
Further CIT(A) should accept the submissions submitted by the assessee though not in the prescribed manner because the AR of the assessee was ill and was not in a condition to appear for hearing. Moreover the AR of assessee had tried to file application for the adjournment of the hearing which should be accepted and assessee should be given reasonable opportunity of being heard considering the circumstances because the submissions submitted by the AR was the supporting of the additions made by the AO .Otherwise if the same would not be considered then the decision would be considered without giving reasonable opportunity of being heard to the assessee.
Contention of the revenue:
Revenue was of the view that as the assessee was already given more than sufficient opportunities of being heard and moreover after talking the date of hearing before the CIT(A) he did not appear so the assessment made ex-parte was not wrong. So, more opportunities should not be given to it.
Held by ITAT:
ITAT held that though lot of opportunities had been given to the assessee but as the Ld. AR of assessee was ill on the date of hearing as evidenced so he could not be able to present himself in the hearing therefore asked for the adjournment and also submitted the submissions So, the revenue should have considered the submissions before passing of the order as a law of natural justice because the facts which the AR submitted might has the power to delete the additions made by AO or might recall the order So, the assessee should be given the opportunity of being heard considering the circumstances of the assessee.
