MAHESH DYEING & PRINTING MILLS PVT. LTD.,,SURAT vs. THE INCOME TAX OFFICER, WARD-1(1)(4),, SURAT

Mahesh Dyeing & Printing Mills Pvt. Ltd., Vs. ITO, Ward-1(1)(4), Surat /ITA No.439/AHD/2017 Page 1 of 3 आयकर अपील�य अ�धकरण,सुरत �यायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER आ.अ.सं./I.TA.No.439/AHD/2017 �नधा�रण वष�/Assessment Year : 2012-13 Mahesh Dyeing & Printing Mills Pvt. Vs. The Income Tax Officer, Ltd., Ward-1(1)(4), Surat. 107, Shivanand Nagar Ind. Estate, Bardoli Road, Tanithara, Surat – 394 227. [PAN: AABCM 9282 E] अपीलाथ� Appellant ��यथ�/Respondent �नधा�रती क� ओर से /Assessee by: Ms. Chetali Shah – CA राज�व क� ओर से /Revenue by: Shri Prasoon Kabra - Sr.DR

सुनवाई की तारीख/ Date of hearing: 13.05.2019 उ�घोषणा क� तार�ख/Pronouncement on: 13.05.2019 आदेश /O R D E R PER BHAVNESH SAINI, JM: This appeal by the assessee has been directed against the order of 1. Learned Commissioner of Income Tax(Appeals)-1, Surat dated 20.12.2016 for the assessment year 2012-13.

In this case, assessee filed Return of Income of Rs.9,08,120/-. The 2. Assessing Officer made addition on account of bogus share application money u/s.68 of the Income Tax Act in a sum of Rs.1,14,00,000/- and also made addition of Rs.57,000/- on account unaccounted expenses

Mahesh Dyeing & Printing Mills Pvt. Ltd., Vs. ITO, Ward-1(1)(4), Surat /ITA No.439/AHD/2017 Page 2 of 3

u/s.69C of the Act. Both the additions were challenged before the Learned Commissioner of Income Tax (Appeals) [CIT(A)]. The Learned CIT(A) noted that at the time of appellate proceedings assessee sought adjournments various time and ultimately none attended to appellate proceedings. The Learned CIT(A), therefore, dismissed the appeal of the assessee for non-prosecution. The Learned CIT(A) also briefly noted that no documentary evidence filed on merit to challenge the additions. The appeal of the assessee was accordingly dismissed.

After considering rival submissions, we are of the view that the 3. matter requires reconsideration at the level of Learned CIT(A). Accordingly to Section 250(6) of the Income Tax Act, the Learned CIT(A) is required to mention point for determination and reasons for decision in the appellate order while disposing of the appeal of the assessee. The Learned CIT(A), however, dismissed the appeal of the assessee for non- prosecution. Even if assessee does not appeal before him, Learned CIT(A) shall have to pass reasoned order on merits.

Though the Learned CIT(A) decided the appeal on merit as well 4. but no reasons for decision have been mentioned in the appellate order while dismissing the appeal of the assessee. Thus, the order of Learned CIT(A) cannot be sustained in law. We, accordingly set-aside the impugned order and restore the appeal of the assessee to fie of Learned

Mahesh Dyeing & Printing Mills Pvt. Ltd., Vs. ITO, Ward-1(1)(4), Surat /ITA No.439/AHD/2017 Page 3 of 3

CIT(A)-1, Surat with a direction to re-decide the appeal of the assessee on merits giving reasons for decision in the appellate order. The Learned CIT(A) shall decide the appeal of the assessee by giving reasonable sufficient opportunity of being heard to the assessee.

In the result, appeal of the assessee is allowed for statistical 5. purpose.

The order pronounced in the open court 13-05-2019. 6.

Sd/- Sd/- (O.P.MEENA) (BHAVNESH SAINI) (लेखासद�यकेसम� /ACCOUNTANT MEMBER) (�याियकसद�यतथा/JUDICIAL MEMBER) सुरत/ Surat, �दनांक Dated: 13th May , 2019/S.Gangadhara Rao, Sr.PS Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order / / TRUE COPY / / Assistant Registrar, Surat