SAISUDHIR ENERGY LIMITED ,HYDERABAD vs. ACIT, CIRCLE-1, ANANTAPUR

At the outset, it is the submission on behalf of the assessee that the Ld. CIT(A) disposed-of the appeal ex-parte observing that various notices under section 250 of the Income Tax Act, 1961 (for short “the Act”) were issued to the assessee, but the assessee failed to comply with any of such notices nor did the assessee make any written submissions.

Learned AR submitted that even otherwise also the Ld. CIT(A) could have referred to the facts and dispose-of the matter on merits so as to have effective assistance to the higher appellate fora. Learned AR submits that in the interest of justice, an opportunity may be granted to the assessee to effectively prosecute her appeal, by restoring the appeal to the file of the Ld. CIT(A).

Though the learned DR vehemently oppose the request of the assessee, the facts remains that the Ld. CIT(A) did not refer to the facts nor did he dispose of the appeal on merits. Even in the absence of the assessee, it is always open for the Ld. CIT(A) to deal with the matter on merits instead of dismissing the same in limine.

Having regard to the facts and circumstances of the case, we are of the considered opinion that the impugned order does not comply with the requirement of Section 250 (6) of the Act and cannot be sustained. If the request of the learned AR is granted affording an opportunity to the assessee to prosecute her appeal before the Ld. CIT(A) by submitting the evidences, the highest that would happen is that a cause could be decided on merits. When the technicalities are pitted against the delivery of substantial justice, the former must give way to the later.

With this view of the matter, we set aside the impugned order and restore the appeal to the file of the Ld. CIT(A). We direct the assessee to co-operate with the first appellate authority in getting the matters disposed of on merits without seeking any adjournments and the Ld. CIT(A) to take a fresh look at the matter, after affording a reasonable opportunity to the assessee of being heard. We order accordingly.

In the result, appeal of the assessee is treated as allowed for statistical purposes.