In a recent judgment concerning the assessment year 2014–15, the Income Tax Appellate Tribunal (ITAT) has reiterated the importance of granting taxpayers a fair opportunity to be heard, particularly in the age of digital proceedings. The case revolves around an assessee company whose appeal had been delayed and later dismissed by the Commissioner of Income-tax (Appeals) [CIT(A)] without proper consideration of the assessee’s request for a virtual hearing.
Background of the Case
The assessee filed an appeal against the order of the National Faceless Appeal Centre (NFAC)/CIT(A), dated 23.08.2022. There was a delay of 133 days in filing the appeal, which the assessee attributed to the illness of its Director who was responsible for tax matters. The Director had been suffering from severe back pain and other medical conditions. A sworn affidavit supporting the reason for the delay was submitted.
While the Departmental Representative (DR) opposed the condonation of delay, the Tribunal, acknowledging the genuine cause shown and supported by an affidavit, decided to condone the 133-day delay in the interest of justice.
Violation of Natural Justice
Despite the condonation, the Tribunal noted that the assessee had not been granted a fair opportunity to present its case before the CIT(A). Although the High Court had directed the CIT(A) to grant a virtual hearing and the same was scheduled for 3rd August 2022 (with a notice issued on 28th July 2022), no representative appeared for the assessee. However, the Tribunal acknowledged that a single instance of non-appearance does not justify disposing of the appeal without due consideration, especially when the matter had previously seen multiple listings.The Tribunal emphasized that the CIT(A) sustained the additions made by the Assessing Officer (AO) without providing a “meaningful” opportunity for the assessee to present its case. This was viewed as a breach of natural justice principles.
Tribunal’s Direction
The Tribunal remanded the matter back to the CIT(A) for fresh adjudication, explicitly directing that the assessee be given a fair and meaningful chance to be heard—preferably through virtual proceedings, if requested. The case was allowed for statistical purposes, underscoring the procedural nature of the order rather than a decision on the merits of the case.
Income Tax Case Law Shwas Homes Private Limited VS The Asst.Commissioner of Income-tax
Citation-2025 TAXONATION 711 (ITAT-COCHIN) (Click here ot read full judgement)
SUBSCRIBE GST & INCOME TAX E-LIBRARY (INDIA'S HIGHEST CASE LAW DATA)
FOR MORE UPDATE ON GST/ IT JOIN OUR FREE WHATSAPP GROUP BY CLICKING ON THIS LINK https://chat.whatsapp.com/C8VB6F6VHme3A061UDQKhj
