SHASHI GUPTA,NEW DELHI vs. ITO WARD - 49(4), NEW DELHI

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ITA 7098/DEL/2019Status: DisposedITAT Delhi02 August 2022AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT held that the CIT(A) has no power to dismiss an appeal for non-prosecution and must dispose of appeals on merits, even in ex-parte orders, as per Section 250(6) of the Act. The order of the CIT(A) was set aside.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed for want of prosecution and non-attendance, despite the CIT(A) not disposing of the appeal on merits. The ITAT noted that the CIT(A) had not addressed the grounds of appeal.

What were the issues?

Whether the CIT(A) can dismiss an appeal for non-prosecution without adjudicating on the merits of the case. The scope of the CIT(A)'s powers under Section 250(6) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 250(6),Section 153A,Section 153C

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Income Tax Appellate Tribunal, DELHI BENCH “G” DELHI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI PRADIP KUMAR KEDIA

For Respondent: Shri Abhishek Kumar, Sr.D.R

PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed at the instance of the Assessee against the order of the Commissioner of Income Tax (Appeals)-XVII, New Delhi [‘CIT(A)’ in short], dated 12.06.2019 arising from the assessment order dated 31.12.2018 passed by the Assessing Officer (AO) under Section 153A/153C of the Income Tax Act, 1961 (the Act) concerning AY 2012-13.

2.

As per its grounds of appeal, the assessee has challenged the addition of Rs.41,081/- allegedly towards undisclosed sources.

3.

When the matter was called for hearing, none appeared for the assessee. Accordingly, the matter is proceeded ex-parte.

4.

On perusal of the order of the CIT(A), we straightaway notice that the CIT(A) has dismissed the appeal before it for want of prosecution and nonattendance. It is further noticed that only two opportunities were given to the assessee in this regard. The CIT(A) has not disposed of the appeal on merit but has dismissed the appeal on account of non prosecution.

5.

We straightway refer to Section 250(6) of the Act which enjoins that the CIT(A) shall state the points for determination before it and the decision shall be rendered on such points alongwith reasons for the decision. Thus, it is incumbent upon the CIT(A) to deal with the grounds on merits even in ex parte order. In view of Section 250(6) of the Act, the CIT(A) has no power to dismiss an appeal on account of non-prosecution. This view is also taken by the Hon’ble Bombay High Court in case of CIT vs. Premkumar Arjundas Luthra HUF (2017) 291 CTR 614 (Bom.). A bare glace of the order of the CIT(A) shows that CIT(A) has not addressed itself on the various points placed for its determination at all and dismissed the appeal of assessee for default in nonappearance. Needless to say, the CIT(A) plays role of both adjudicating authority as well as appellate authority. Thus, the CIT(A) could not have shunned the appeal for non- compliance without addressing the issue on merits.

6.

In the totality of the circumstances, we consider it just and expedient to restore the matter back to the CIT(A) in the larger interest of justice with a view to enable the assessee to avail proper opportunity for disposal of appeal by the CIT(A) on various points. Needless to say, the assessee shall extend full co- operation to the CIT(A) without any demur, failing which, the CIT(A) shall at liberty to conclude the appellate proceedings in accordance with law. Hence, the order of the CIT(A) appealed against, is set aside and all the issues raised in the impugned appeal are restored back to the file of the CIT(A) for fresh adjudication in accordance with law after giving reasonable opportunity of hearing to the assessee.

7.

In the result, appeal of the assessee is allowed for statistical purposes. Order was pronounced in the open Court on 02/08/2022.

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