MR. CHENGALRAYA NAIDU RAJANBABU,CHENNAI vs. ITO, CORP. WARD.3(1), CHENNAI

There is a delay of 237 days in filing the appeal by the assessee.

The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.

When the appeal was taken up for hearing, none appeared on behalf of the assessee and accordingly, the hearing was proceeded with the able assistance of Ld. D.R, Shri Vijay Kumar, JCIT.

The assessee is an individual who filed his return of income on 29.07.2017, declaring a total income of Rs. 13,79,950/-. In the assessment framed under section 143(3) of the Income-tax Act, 1961 (“the Act”), the Assessing Officer made an addition of Rs. 19,25,000/- by treating the agricultural income declared by the assessee as “income from other sources.” Aggrieved by the said addition, the assessee preferred an appeal before the Ld. CIT(A), who confirmed the addition without going into merits of the case relying on the order of ITAT, Delhi in the case of CIT vs. Multiplan India Pvt. Ltd. reported in 38 ITD 320 (Delhi).

The Ld. Departmental Representative (DR), relied on the orders of lower authorities and submitted that the orders were passed ex- parte as the assessee has been non compliance to the notices issued.

We have heard the submissions of the Ld. DR and perused the material available on record. On perusal of the order of the Ld. CIT(A), we find that the appeal was dismissed solely on the ground of non- compliance by the assessee, without dealing with the merits of the additions made by the AO. In our considered view, the Ld. CIT(A) ought to have adjudicated the matter on merits. In the interest of justice, we deem it fit to set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.

In the result, the appeal filed by the assessee is allowed for statistical purposes.