ABHAY YESHWANT POTNIS,THANE vs. ITO, WARD-42(1)(4), MUMBAI, MUMBAI

The assessee filed return of income declaring total income of Rs.6,72,020/-. The assessment was completed u/s 143(3) of the Income Tax Act, 1961 assessing total income at Rs 53,51,170/-. Aggrieved by the assessment order, the assessee preferred appeal before the Ld. CIT(A).

Before us, the Ld. Authorised Representative submitted that the order of the Ld. CIT(A) was passed ex parte and prayed that one more opportunity may be granted to the assessee for presenting its case on merits. The Ld. AR submitted that substantial additions have been confirmed without proper examination of evidences and therefore the matter may be restored to the file of the Ld. CIT(A).

The Ld. Departmental Representative relied upon the orders of the lower authorities. It was submitted that sufficient opportunities were granted by the Ld. CIT(A) and therefore the assessee should not be allowed to take advantage of its own default.

We have heard the rival submissions and perused the material available on record. We find that the impugned order has been passed ex parte for want of prosecution. Though the assessee has remained non- compliant before the Ld. CIT(A), it is equally true that the first appellate authority is required to adjudicate the grounds raised before him on merits in terms of section 250(6) of the Act. The appellate order is required to state the points for determination, the decision thereon and the reasons for such decision. On perusal of the impugned order, we find that the Ld. CIT(A) has primarily dismissed the appeal on account of non- prosecution and thereafter affirmed the additions made by the Assessing Officer without dealing with the grounds of appeal in the manner contemplated under section 250(6) of the Act. The issues raised by the

Considering the facts of the case and in the interest of substantial justice, we deem it fit to set aside the impugned order and restore the matter to the file of the Ld. CIT(A) for fresh adjudication. The Ld. CIT(A) shall decide the appeal afresh in accordance with law after affording reasonable opportunity of being heard to the assessee and by passing a speaking order dealing with each ground of appeal.

The assessee is directed to promptly comply with the notices issued by the Ld. CIT(A) and shall not seek unnecessary adjournments. In case of failure to cooperate, the Ld. CIT(A) shall be at liberty to decide the appeal on the basis of material available on record in accordance with law.

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