What did the Tribunal hold?

The Tribunal found that while the assessee failed to cooperate, the CIT(A) did not address the appeal on merits. Therefore, the matter was remitted back to the CIT(A) for fresh consideration.

The assessee's appeal before the CIT(A) was dismissed in limine for non-prosecution. The assessee claimed it was due to unavoidable circumstances and sought another opportunity to be heard.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal for non-prosecution without granting sufficient opportunity, and if the matter should be remitted for fresh consideration.

Richi Interiors vs ACIT | ITAT Hyderabad 2019

Income Tax Appellate Tribunal, HYDERABAD BENCHES “B” : HYDERABAD

Before: SMT. P. MADHAVI DEVI & SHRI A. MOHAN ALANKAMONY

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B” : HYDERABAD

BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER

I.T.A. No.663/HYD/2019 Assessment Year: 2014-15 M/s.Richi Interiors, Asst. Commissioner HYDERABAD Vs of Income Tax, [PAN: AAGFR1384L] Circle-14(1), HYDERABAD (Appellant) (Respondent)

Stay Application No. 198/Hyd/2019 (Arising out of ITA No. 663/Hyd/2019) Assessment Year : 2014-15 M/s.Richi Interiors, Asst. Commissioner HYDERABAD Vs. of Income Tax, [PAN: AAGFR1384L] Circle-14(1), HYDERABAD (Applicant) (Respondent) For Assessee : Shri K.C.Devdas, AR For Revenue : Shri Solgy Jose T.Kottaram, DR Date of Hearing : 29-08-2019 Date of Pronouncement : 29-08-2019 O R D E R PER A. MOHAN ALANKAMONY, A.M. : This appeal is filed by the assessee aggrieved by the order of Ld.CIT(A)-6, Hyderabad, dated 01-02-2019 for the AY.2014-15 in ITA No.10235/2017-18/A3 CIT(A)-6.

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The assessee has raised several grounds in his appeal. However, the crux of the issue is that the Ld.CIT(A) has erred by dismissing the appeal of the assessee in limine for non- prosecution.

At the outset, Ld.AR submitted before us that due to unavoidable circumstances, neither the assessee nor its Counsel could appear before the Ld.CIT(A) on the date of hearing. It was further submitted that the Ld.CIT(A) without granting sufficient opportunity to the assessee, dismissed the appeal of the assessee for non-prosecution. It was therefore pleaded that the matter may be remitted back to the file of Ld.CIT(A), thereby providing the assessee with another opportunity of being heard.

The Ld.DR vehemently opposed to the submissions of the Ld.AR and pointed out that the Ld.CIT(A) has granted three opportunities to the assessee of being heard. However, neither the assessee nor its Ld.DR co-operated in the proceedings. The Ld.DR further argued stating that in such situation, the Ld.CIT(A) had no other option but to dismiss the appeal of the assessee in limine.

We have heard the rival submissions and carefully perused the material on record. From the facts of the case it is apparent that the assessee has grossly failed to comply with its obligation in co-operating before the Ld.CIT(A) for prompt disposal of the appeal. However, we also find that the Ld.CIT(A)

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has not addressed the appeal on merits, but, disposed the appeal in limine for non-prosecution. Therefore, in the interest of justice, we hereby remit the matter back to the file of Ld.CIT(A) for fresh consideration, thereby granting one more opportunity to the assessee of being heard. We also make it clear that if the assessee or its Ld.AR do not co-operate before the Ld.CIT(A) in the proceedings promptly, then, the Ld.CIT(A) shall be at liberty to dispose-of the appeal on merits and as per law based on the materials on record.

Since we have remitted back the issue to the file of Ld.CIT(A) for denovo consideration, the stay application filed by the assessee do not survive. Accordingly, the stay petition is dismissed.

In the result, appeal of the assessee is allowed for statistical purposes, as indicated herein above and the stay application is dismissed.

Order pronounced in the open court on 29th August, 2019

Sd/- Sd/- ( P. MADHAVI DEVI ) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated 29th August, 2019 TNMM

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Copy to : 1. M/s.Richi Interiors, C/o. M/s.Sekhar & Co., 133/4, R.P.Road, Secunderabad. 2. Asst. Commissioner of Income Tax, Circle-14(1), Hyderabad. 3. The CIT(Appeals)-6, Hyderabad. 4. The Pr.CIT-6, Hyderabad. 5. D.R. ITAT, Hyderabad. 6. Guard File.

RICHI INTERIORS,HYDERABAD vs. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-14(1), HYDERABAD

What did the Tribunal hold?

What were the facts?

What were the issues?

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