IVRCL INDORE GUJARAT TOLLWAYS LIMTED,HYDERABAD vs. DCIT., CIRCE-2(1), HYDERABAD

The assessee has raised the following grounds of appeal: “1. The order of the CIT(A) is in gross violation of the provisions of law and hence is bad in law.

When the appeal was called for hearing, none appeared on behalf of the assessee, nor was any adjournment petition filed. Therefore, the appeal is proceeded ex parte qua the assessee, based on the material available on record, after hearing the submissions of the Learned Departmental Representative (“Ld. DR”).

The Ld. DR supported the order of the Ld. CIT(A) and submitted that the Ld. CIT(A) had provided adequate opportunities to the assessee to present its case. Despite several notices issued through the ITBA portal, the assessee failed to file any written submissions or to appear on the dates fixed for hearing. It was further contended that the conduct of the assessee shows

We have considered the submissions of the Ld. DR and perused the orders of the authorities below. It is evident from the appellate order that the Ld. CIT(A) had dismissed the appeal in limine on account of non-compliance. However, on perusal of the same, we observe that the assessee had raised specific grounds, including Ground No. 1 (placed at page no. 2 of the CIT(A)’s order), wherein it was contended that the Ld. AO had not considered the written submission dated 30.01.2024 filed in response to the final show-cause notice dated 25.01.2024. Despite such a specific ground being raised, the Ld. CIT(A) has not adjudicated the same on merits. Even in an ex parte appellate order, the Ld. CIT(A) is statutorily bound under section 250(6) of the Act to dispose of each ground of appeal by passing a speaking and reasoned order on merits. Failure to do so amounts to a procedural irregularity rendering the appellate order unsustainable in law. Therefore, in our considered view, the dismissal of the appeal merely for non- prosecution without adjudicating the specific grounds raised by the assessee is contrary to the settled principles of natural justice. Accordingly, we are of the opinion that this issue requires reconsideration by the Ld. CIT(A). Therefore, in the interest of substantial justice, we deem it appropriate to remand the matter to the file of the Ld. CIT(A) with the following directions: a. The Ld. CIT(A) shall provide adequate opportunity of being heard to the assessee and shall adjudicate the appeal afresh on Page 3 of 4 merits, by passing a reasoned and speaking order in accordance with law. b. The assessee shall be at liberty to file all necessary documentary evidence and written submissions in support of its contentions. c. The assessee is also directed to cooperate in the appellate proceedings and not to seek unnecessary adjournments so as to enable timely disposal of the appeal.

In the result, the appeal of the assessee is allowed for statistical purposes in the above terms.