AXIS SPACES PVT. LTD,MUMBAI vs. DCIT14(1) (1), MUMBAI

Shri Bhupendra Shah appearing on behalf of the assessee submitted that the CIT(A) has dismissed the appeal of assessee in-limine for non- prosecution. The ld.Authorized Representative of the assessee submitted that the assessee has prima-facie good case in its favour. The assessee would be able to show merits in the appeal if an opportunity is granted to appear before the CIT(A).

On the other hand, Shri Mehul Jain representing the Department vehemently defended the impugned order. The ld.Departmental Representative submitted that repeated notices were issued to the assessee. The assessee failed to appear before the CIT(A) on the date and time fixed despite service of notice.

Both sides heard. The CIT(A) has dismissed the appeal of assessee in- limine by following the order in the case of CIT vs. Multiplan India Ltd, 38 ITD 320(Del). It is no more res-integra that the CIT(A) cannot dismiss the appeal for non-prosecution. The CIT(A) is under obligation to decide appeal of the assessee on merits on the issues/grounds raised in Form No.35. Taking into consideration entirety of facts we deem it appropriate to restore this appeal to the file of CIT(A) for denovo adjudication on merits of the grounds raised in the appeal before First Appellate Authority. The CIT(A) shall allow reasonable opportunity of hearing/ to make submissions to the assessee, in accordance with law.

The assessee is directed to make submissions before the CIT(A) after service of notice of hearing, without fail. In case assessee fails to respond to the notice served by CIT(A), the CIT(A) is at liberty to take an adverse view.

In the result, appeal by assessee is allowed for statistical purpose, in the terms aforesaid.