SHRI SANJAY KISHANLAL BISHNOI,AHMEDABAD vs. THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-2(2), AHMEDABAD

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ITA 120/AHD/2019Status: DisposedITAT Ahmedabad06 March 2019AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) is obligated to decide appeals on merits, even in ex parte cases, as per Section 250(6) of the Act. The CIT(A)'s order was set aside for failing to address the grounds of appeal.

What were the facts?

The assessee's appeal was dismissed by the CIT(A) ex parte for want of prosecution without proper notice. The assessee contended that the CIT(A) failed to provide a decision on merits, violating principles of natural justice.

What were the issues?

Whether the CIT(A) order dismissing the appeal ex parte without deciding on merits violates principles of natural justice and Section 250(6) of the Act.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA

PER PRADIP KUMAR KEDIA - AM:

The captioned appeal has been filed at the instance of the Assessee against the order of the Commissioner of Income Tax (Appeals)-6, Ahmedabad (‘CIT(A)’ in short), dated 20.11.2018 arising in the assessment order dated 30.12.2017 passed by the Assessing Officer (AO) under s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (the Act) concerning AY 2012-13.

2.

The assessee in the captioned appeal has raised several grounds assailing the order of the CIT(A) for dismissal of the appeal of the assessee. However, it is noticed that one of the substantive grounds

ITA No.120/Ahd/19 [Sanjay K. Bishnoi vs. AC IT] A.Y. 2012-13 - 2 - raised by the assessee whereby the assessee seeks to impugn the order of the CIT(A) towards alleged valuation of principles of natural justice.

3.

When the matter was called for hearing, the learned AR for the assessee at the outset submitted that the appeal was filed with CIT(A)- 10, Ahmedabad, whereas the order was passed by the CIT(A)-6, Ahmedabad and that too without ensuring service of notice on the assessee. It was thus submitted that the appellate order passed by the CIT(A) is an ex parte order whereby the CIT(A) has summarily dismissed the appeal of the assessee in limine for want of prosecution without service of notice. It was contended that the CIT(A) has not rendered any decisions on merits as obligated under s.250(6) of the Act. It was thus urged that the order of CIT(A) suffers from violation of principles of natural justice and thus requires to be set aside for fresh adjudication on merits.

4.

The learned DR, on the other hand, relied upon the order of the CIT(A) .

5.

We have considered the rival submissions. 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 was incumbent upon the CIT(A) to deal with the grounds on merits even in ex parte order. A bare glance of the order of the CIT(A) shows that CIT(A) has not addressed itself on the various points for its determination at all and dismissed the appeal of assessee for default in appearance. 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.

ITA No.120/Ahd/19 [Sanjay K. Bishnoi vs. AC IT] A.Y. 2012-13 - 3 - 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.

This Order pronounced in Open Court on 06/03/2019

Sd/- Sd/- (RAJPAL YADAV) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 06/03/2019 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।

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