SWARGIYA NAGARSEVIKA MEENATAI VIJAY HAUGULE RAHIVASI SEVA MANDAL,NAVI MUMBAI vs. INCOME TAX OFFICER 28(3)(1), MUMBAI, NAVI MUMBAI

The grounds of appeal are as under:-

Briefly stated facts of the case are that the Assessing Officer had a specific information that the assessee, a Trust had carriedout certain financial transactions during the relevant assessment year. In response to notice u/s 148 of the Act, return was filed. But no further compliance was made as a result of which the assessment order was passed invoking the provisions of section 144 of the Act. While passing the assessment order, the AO made the addition under the head of Income from House property of Rs.3,18,00,001/- as the assessee had failed to filed any reply.

The assessee in the appeal filed before the ld.CIT(A) submitted that during the assessment proceeding, details could not be P a g e | 3 A.Y. 2020-21 Swargiya Nagarsevika Meenatai Vijay Chaugule Rahivasi Seva Mandal filed as email on which notice had been issued by the Department belonged to the Professional who used to file its return of income. However, even before the appellate authority no compliance was made to various notices of hearing issued by him. Consequently, the appeal was dismissed in limine affirming the assessment order for want of any rebuttal on part of the assessee.

Before us, the ld.AR has pleaded to send back the entire matter to the lower authorities for fresh consideration allowing the assessee one final opportunity to canvass his grounds. The ld.DR did not have any objection although he stated that the assessee was habitual defaulter.

We have heard the rival parties and perused the material available on records. It is observed that the ld.CIT(A) dismissed the appeal solely on the ground of non-prosecution. He failed to adjudicate the issues raised in the grounds of appeal and did not examine the material available on record. Such dismissal without deciding the appeal on merits is contrary to the principles of natural justice. It is settled law that it is the duty of the appellate authority to dispose of an appeal on merits after considering the material on record, even if the appellant fails to appear. However, it is equally true that it is the fundamental duty

1 As the ld. AR has requested before us that the assessee shall be given one more opportunity, we are of the opinion that the scales of justice demands that the matter should be verified and revisited at the level of AO and accordingly, we are of the considered view that the matter should be remanded back to him for framing de novo assessment orderwhile applying the principles of natural justice after affording sufficient opportunity of being heard to the assessee. We order accordingly, setting aside the appellate order and allowing the grounds of appeal for statistical purposes.

In the result, the appeal is allowed for statistical purposes.