SHRI SATISH KUMAR TRIPATHI,REWA vs. INCOME TAX OFFICER WARD-1, REWA

This is an Appeal by the Assessee directed against the Order by the Commissioner of Income Tax (Appeals)-1, Jabalpur (‘CIT(A)’ for short) dated 23.8.2018, dismissing the assessee’s appeal contesting his assessment u/s. 143(3) of the Income Tax Act, 1961 (‘the Act’ hereinafter) dated 14.6.2016 for assessment year (AY) 2011-12. 2.1 The appeal raises as many as six grounds, agitating several additions/ disallowances. At the very outset, however, it was observed by the Bench that the order by the ld. CIT(A) is not on merits, but an in limine dismissal of the appeal for want of prosecution by the assesse-appellant.

We have heard the parties, and perused the material on record. The appeal before the first appellate authority was filed on 05.7.2016, and fixed for hearing for the first time on 06.7.2018, i.e., after two years. Where, one wonders, then, was the urgency in proceeding ex parte the assesse-appellant on, even assuming so, non-compliance on one date. The assessee had in fact, by joining the proceedings on the first date hearing itself, furnishing the reply, exhibited his intent to prosecute his appeal. The submissions made by the ld. DR are without force. The assessment under challenge being pursuant to the Tribunal’s order dated 28.5.2015 (in the instant proceedings cannot, in strict sense, be said to be the second round before the 3 Satish Kumar Tripathi v. ITO Tribunal. If the assessee was recalcitrant earlier, that was a matter to be canvassed during the earlier hearing and considered at that stage, which aspect is to be regarded as closed. Again, reference to the assessment order, also sought to be made by the ld. DR during hearing, is not relevant at this stage, as the same is to be considered by the first appellate authority while deciding the assessee’s appeal on merits, which would also include the aspect of furnishing evidence for the first time before him, and qua which the law is well defined. That is, where the assessee does not appear or cooperate before the assessing or the appellate authority, which could well be the case, he does so at his own peril. The law (s.250(6)) contemplates an order on merits by the first appellate authority, while in the instant case the ld. CIT(A) has not even considered the assessee’s explanation/ submissions forming part of the record. We accordingly have no hesitation in, setting aside the impugned order, remitting the matter back to the file of the ld. CIT(A) for adjudication afresh in accordance with law. The assessee, even as assured by the Shri Modh, shall extend full cooperation in the set-aside proceedings. We decide accordingly.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on July 16, 2020 Sd/- Sd/- (N.R.S.Ganesan) (Sanjay Arora) Judicial Member Accountant Member Dated: 16/07/2020 Aks (P)