PAWAN KUMAR CHANDRAKAR, DHAMTARI,DHAMTARI vs. ITO, WARD-DHAMTARI, DHAMTARI

Facts

The assessee sold an immovable property but did not file an Income Tax Return or offer capital gains. The AO reopened the case, taxed the entire sale consideration and interest, and levied penalties for concealment and non-compliance. The CIT(A) dismissed all appeals ex-parte due to non-prosecution, leading the assessee to appeal to the ITAT.

Held

The Tribunal found that the CIT(A) erred by dismissing appeals ex-parte without deciding them on merits, which violates Section 250(6) of the Act and principles of natural justice. Despite the assessee providing relevant property details, the CIT(A) failed to apply mind to the case. Consequently, the Tribunal set aside all impugned orders and remanded the matters back to the CIT(A) for fresh adjudication on merits after providing due opportunity of being heard.

Key Issues

Whether the CIT(A) can dismiss appeals ex-parte for non-prosecution without a merits-based decision, violating statutory provisions and natural justice principles. Also, the validity of reassessment proceedings and penalties levied.