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Facts
The assessee, a dairy farmer, purchased a property in 2010. Reassessment proceedings were initiated for A.Y. 2013-14 due to non-filing of ITR and property purchase, leading to an addition of Rs. 9.65 lacs under Section 69 for unexplained investment related to a 'release deed'. The assessee claimed the payment was for his pre-existing share. The CIT(A) dismissed the appeal for non-prosecution, which the assessee challenged before the ITAT.
Held
The ITAT, after condoning an 8-day delay, ruled that the CIT(A) has a statutory obligation under Section 251 to dispose of appeals on merits, not summarily for non-prosecution. Citing a Bombay High Court judgment, the Tribunal set aside the CIT(A)'s order and remanded the matter for de-novo adjudication, granting the assessee a fresh opportunity to present evidence.
Key Issues
Whether the CIT(A) can summarily dismiss an appeal for non-prosecution; and the validity of the addition under Section 69 for unexplained investment in property.
Sections Cited
147, 144, 144B, 148, 149, 69, 234A, 234B, 234C, 142(1), 251(1)(a), 251(1)(b), 251(2), 250, 250(6), 246A
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Income Tax Appellate Tribunal, Hyderabad ‘B’ Bench, Hyderabad
आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-
1. 1. निर्धाररती/The Assessee : Mahesh Yadav Alam, 5-3-110/3, Yapral, Secunderabad – 500087, Telangana. 2. रधजस्व/ The Revenue : The Income Tax Officer, Ward –15(1), Hyderabad.