M/S. PNG BROTHERS,PUNE vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-12, PUNE

ITA 1153/PUN/2023Status: DisposedITAT Pune22 November 2023AY 2017-185 pages

AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) is obligated to decide appeals on their merits and does not have the power to dismiss an appeal for non-prosecution. Therefore, the order of the CIT(A) was set aside.

What were the facts?

The assessee's appeal was dismissed by the CIT(A) without discussing the merits of the case, solely on the grounds of non-prosecution due to the assessee's failure to file submissions. The assessee requested another opportunity to be heard.

What were the issues?

Whether the CIT(A) can dismiss an appeal for non-prosecution without adjudicating on the merits of the case.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

CIT v. Premkumar Arjundas Luthra (HUF)
297 CTR 614 · 2017 · HC
659 citing

Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE

Before: SHRI S.S.GODARA & DR. DIPAK P. RIPOTE

For Appellant: Shri M.R.Bhagwat – AR

For Respondent: Shri M.G.Jasnani – DR

Hearing: 22/11/2023Pronounced: 22/11/2023

ORDER

PER DR. DIPAK P. RIPOTE, AM:

This is an appeal filed by the assessee against the order of ld.CIT(A)[NFAC], under section 250 of the Income Tax Act, 1961 dated 15.09.2023 emanating from the assessment order under section 143(3) of the Income Tax Act, 1961 dated 25.12.2019 for the A.Y.2017-18.

The ld.Authorised Representative(ld.AR) for the Assessee submitted that assessee’s appeal was dismissed by the ld.CIT(A) M/s.PNG Brothers [A] without discussing each and every ground and merits of the case. Hence, ld.AR requested for one more opportunity of being heard to the assessee.

The ld.Departmental Representative(ld.DR) for the Revenue relied on the orders of the Lower Authorities.

On perusal of the order of the ld.CIT(A)[NFAC] it is observed that ld.CIT(A) has dismissed the appeal without discussing merits, as assessee failed to file submission in response to various notices.

4.1 The Hon’ble Bombay High Court in the case of Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF) Bombay)/[2017] 297 CTR 614 (Bombay) has held as under : Quote, “8. From the aforesaid provisions, it is very clear once an appeal is preferred before the CIT(A), then in disposing of the appeal, he is obliged to make such further inquiry that he thinks fit or direct the Assessing Officer to make further inquiry and report the result of the same to him as found in Section 250(4) of the Act.

Further Section 250(6) of the Act obliges the CIT(A) to dispose of an appeal in writing after stating the points for determination and then render a decision on each of the points which arise for consideration with reasons in support. Section 2 M/s.PNG Brothers [A] 251(1)(a) and (b) of the Act provide that while disposing of appeal the CIT(A) would have the power to confirm, reduce, enhance or annul an assessment and/or penalty. Besides Explanation to sub-section (2) of Section 251 of the Act also makes it clear that while considering the appeal, the CIT(A) would be entitled to consider and decide any issue arising in the proceedings before him in appeal filed for its consideration, even if the issue is not raised by the appellant in its appeal before the CIT(A). Thus once an assessee files an appeal under Section 246A of the Act, it is not open to him as of right to withdraw or not press the appeal. In fact the CIT(A) is obliged to dispose of the appeal on merits. In fact with effect from 1st June, 2001 the power of the CIT(A) to set aside the order of the Assessing Officer and restore it to the Assessing Officer for passing a fresh order stands withdrawn. Therefore, it would be noticed that the powers of the CIT(A) is coterminous with that of the Assessing Officer i.e. he can do all that Assessing Officer could do. Therefore just as it is not open to the Assessing Officer to not complete the assessment by allowing the assessee to withdraw its return of income, it is not open to the assessee in appeal to withdraw and/or the CIT(A) to dismiss the appeal on account of non-prosecution of the appeal by the assessee. This is amply clear from the Section 251(1)(a) and (b) and Explanation to Section 251(2) of the Act which requires the CIT(A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before him. Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act.” Unquote.

3 M/s.PNG Brothers [A]

Thus, Hon’ble Bombay High Court has categorically held that CIT(A) has to decide the appeal on merit and CIT(A) does not have any power to dismiss appeal for non-prosecution. However, in this case ld.CIT(A) has dismissed appeal of the assessee without discussing merits of the case and only on one ground i.e. Non-prosecution.

Therefore, in the facts and circumstances of the case, we set-aside the order of the ld.CIT(A) to ld.CIT(A) for denovo adjudication after giving opportunity to the assessee. The assessee shall provide all the necessary document required by the ld.CIT(A). Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.

In the result, appeal of the assessee is allowed for statistical purpose.

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