SHRI SANTOSH KUMAR SHINGHAI,SAGAR vs. ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE-SAGAR, SAGAR

Considering the fact that the Id. CIT(A) has not decided appeal on merit hence in view of Hon'ble ITAT Jabalpur Bench Jabalpur decision in the case of M/s Shriji Ware House v ITO (ITA no 38/Jab/2015) the order of Id CIT(A) is bad in law and may kindly be cancelled.

The CIT (A) order dated 25.05.2018 is bad in law hence may kindly be cancelled.

On the facts and in the circumstances of the case the Id. CIT(A) should have deleted the adhoc disallowance of Rs.3,14,000/- out of commission payment.

By virtue of the impugned order, the ld. CIT(A) has dismissed the assessee’s appeal for non-prosecution, observing that ‘the appellant failed to offer any explanation properly in support of the grounds raised in this appeal nor any supporting evidences were produced despite adequate opportunity having been provided’. The ld. CIT(A) had issued two notices, dated 13/12/2017 and 11/5/2018, but none appeared on behalf of the assessee before the ld. CIT(A) and the ld. CIT(A) dismissed the appeal of the assessee ex-parte qua the assessee. Such service of notices has, however, been disputed by the assessee. 3. Heard. I find that the CIT(A) has dismissed the appeal without providing proper opportunity to the assessee. Moreover, he has not decided the appeal after discussing in detail, his reasons for agreeing with the assessment order. As such, another opportunity of hearing requires to be given to the assessee to represent his case fully before the ld. CIT(A). Even otherwise, it is trite [‘S. Velu Palandar Vs. DCIT’ 83 ITR 683 (Mad.)] and incumbent on the ld CIT(A) to decide an appeal on merit even in the absence of any representation before them. 4. In view of the above, the matter is remitted to the file of the ld. CIT(A) to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the assessee. The assessee, no doubt, shall cooperate in the fresh proceedings before the ld. CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly.

In the result, for statistical purposes, the appeal is treated as allowed. Order pronounced in the open Court on 03/04/2019.