OUTOKUMPU INDIA PVT. LTD.,NEW DELHI vs. JCIT SPL. RANGE-7, NEW DELHI

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ITA 6685/DEL/2019Status: DisposedITAT Delhi08 January 2021AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT held that the CIT(A) is required to pass a reasoned order on merit, even if the assessee is not represented. The ex-parte dismissal without deciding on merit was improper.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed ex-parte without adjudication on merits. The assessee did not appear, and the CIT(A) sustained the AO's addition based on the assessment order.

What were the issues?

Whether the CIT(A) can dismiss an appeal ex-parte without deciding the issues on merit, and if an adequate opportunity of being heard was provided.

Which sections of the Income-tax Act were involved?

Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC-1’ NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI O.P. KANT

For Respondent: Shri Sriprakash Dubey, Sr.DR
Hearing: 24.12.2020Pronounced: 08.01.2021

This appeal by the assessee is directed against order dated 24.06.2019 passed by the learned CIT(Appeals)-38, New Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2016-17.

2.

None present for the assessee. On perusal of the impugned order, we find that the appeal has been decided ex-party without any adjudication on merit. The assessee was not given adequate opportunity of being heard.

3.

The learned DR submitted that assessee has not availed any opportunity provided for producing evidences in support of his claim. 4. We have heard learned DR through Video Conferencing facility on the issue in dispute and perused the relevant material on record. The learned CIT(A) has dismissed the appeal observing as under:

“4. Determination 1 have gone through the impugned order and facts of the case. The appellant has chosen not to appear during the appellate proceedings. Therefore, addition made by the Assessing officer is sustained, on the reasons given in the Assessment order. In the result, this appeal is DISMISSED.”

5.

In our opinion, in terms of section 250(6) of the Income-tax Act, 1961 (in short ‘the Act’), the Ld. CIT(A) is required to pass reasoned order on merit even in the case of none representation by the assessee. Since this appeal has been dismissed ex-party without deciding the issue in dispute on merit, we feel it appropriate to set aside the impugned order dated 24.06.2019 and restore this appeal back to the file of the Ld. CIT(A) for passing a reasoned order on merit after providing adequate opportunity of being heard to both the assessee and the Assessing Officer.

6.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 8th January, 2021.

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