ANFILCO LIMITED,MUMBAI vs. ACIT CIRCLE-2(1)(1), MUMBAI

Shri Viksit Bhargeva appearing on behalf of the assessee submits at the outset that the orders passed by CIT(A) for the respective Assessment Years are liable to be quashed on the ground that the CIT(A) has dismissed the appeals of assessee in-limine for non appearance. The ld. Authorized Representative for the assessee submits that the CIT(A) had issued notices on two occasions i.e. notice dated 02/08/2022 for hearing dated 17/08/2022 and second notice on 01/09/2022 for hearing on 16/09/2022. On both occasions, the assessee had submitted an application praying for adjournment. The ld. Authorized Representative for the assessee prayed for restoring appeals back to the CIT(A). He contended that the assessee has prima facie good case in its favour.

Per contra, Shri Manoj Kumar Sinha representing the Department vehemently defended the impugned order. The ld. Departmental Representative submits that despite repeated notices the assessee failed to comply with the notice and did not co-operate in appellate proceedings.

Both sides heard, orders of authorities below examined. A perusal of the impugned orders passed by CIT(A) for both the Assessment Years under appeal show, that the appeals for respective Assessment Years were dismissed by the First Appellate Authority for non-compliance of notices. The appeals of the assessee were dismissed in-limine without any findings on merits. The provisions of Income Tax Act does not permit CIT(A) to dismiss the appeal of assessee for non-prosecution [Re. Multiplan India (P) Ltd., 38 ITD 320(Del)] The CIT(A) has to pass the order on merits after examining the records. Taking into consideration entire facts, we deem it appropriate to restore the appeal for Assessment Years 2016-17 and 2017-18 to the file of (A.Y.2016-17) ITA NO. 3045/MUM/2022(A.Y.2017-18)

CIT(A) for fresh adjudication on merits after affording reasonable opportunity of making submissions/hearing to the assessee, in accordance with law.

The assessee is directed to co-operate with the CIT(A) in First Appellate proceedings and make submissions, if any.

In the result, impugned orders for Assessment Year 2016-17 and 2017- 18 are quashed and appeals of the assessee for the said Assessment Years are allowed for statistical purpose.