SAURABH JAYANT BHAGAT,PANVEL RAIGAD vs. INCOME TAX OFFICER, ITO PANVEL

3. Ld.DR for the revenue relied on the order of the Assessing Officer and ld.CIT(A).

Findings & Analysis : 4. We have heard both the parties and perused the records. The ld.CIT(A) has dismissed the appeal without adjudicating each and every ground. The relevant paragraph of the ld.CIT(A) is as under : “In the light of above facts and discussion at point no.-(i) to (xiv) and the by placing reliance on the Judgments of Hon. Supreme Court and High court, it is clear that the appellant assessee is not willing to co- operate with this Appellate authority and same behaviour of the appellant assessee was seen at the time of Assessment proceedings. Consequently, the decision of the AO for making the following additions ie: (a) Rs.53,14,000/- worth of investment in immovable property is found unexplained investment u/s. 69 of the Income-tax Act; (b) Addition of Rs.5,15,000/- on account of unexplained money u/s 69A of the Income-tax Act and (c) Addition of Rs.2,87,000/- on account of unexplained money u/s 69C of the Income-tax Act, is UPHELD. The grounds of the appellant no.- 1 to 5 are rejected.”

4.1 Thus, it can be noted that Assessee had raised five grounds of appeal, but ld.CIT(A) has not adjudicated these grounds. We have perused the page no.7 of the paper book and noted that ld.CIT(A) has not provided proper opportunity to the assessee. & 2718/PUN/2024 [A] 4.2 The Hon’ble Bombay High Court has held in the case of Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF)(Bombay)/[2017] 297 CTR 614 (Bombay) as under : Quote, “8.From the aforesaid provisions, it is very clear once an appeal is preferred before the CIT(A), then in disposing of the appeal, he is obliged to make such further inquiry that he thinks fit or direct the Assessing Officer to make further inquiry and report the result of the same to him as found in Section 250(4) of the Act.

Further Section 250(6) of the Act obliges the CIT(A) to dispose of an appeal in writing after stating the points for determination and then render a decision on each of the points which arise for consideration with reasons in support. Section 251(1)(a) and (b) of the Act provide that while disposing of appeal the CIT(A) would have the power to confirm, reduce, enhance or annul an assessment and/or penalty. Besides Explanation to sub-section (2) of Section 251 of the Act also makes it clear that while considering the appeal, the CIT(A) would be entitled to consider and decide any issue arising in the proceedings before him in appeal filed for its consideration, even if the issue is not raised by the appellant in its appeal before the CIT(A). Thus once an assessee files an appeal under Section 246A of the Act, it is not open to him as of right to withdraw or not press the appeal. In fact the CIT(A) is obliged to dispose of the appeal on merits. In fact with effect from 1st June, 2001 the power of the CIT(A) to set aside the order of the Assessing Officer and restore it to the Assessing Officer for passing a fresh order stands withdrawn.

Therefore, it would be noticed that the powers of the CIT(A) is coterminous with that of the Assessing Officer i.e. he can do all that & 2718/PUN/2024 [A] Assessing Officer could do. Therefore just as it is not open to the Assessing Officer to not complete the assessment by allowing the assessee to withdraw its return of income, it is not open to the assessee in appeal to withdraw and/or the CIT(A) to dismiss the appeal on account of non-prosecution of the appeal by the assessee. This is amply clear from the Section 251(1)(a) and (b) and Explanation to Section 251(2) of the Act which requires the CIT(A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before him. Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non- prosecution as is evident from the provisions of the Act.” Unquote.

ITA Nos.2717 & 2718/PUN/2024 [A] (Penalty Appeal) : 8. This is an appeal filed by the Assessee against the penalty order of ld.Commssioner of Income Tax(Appeal)[NFAC] passed under section 250 of the Act, date 31.05.2024 for the A.Y.2013-14.

9. Since we have set-aside the appeal of the Assessee filed against the quantum addition in ITA No.2717/PUN/2024 for denovo adjudication to ld.CIT(A), the current penalty appeal is also set- aside to the ld.CIT(A) for denovo adjudication. Ld.CIT(A) shall provide opportunity to the assessee. Assessee shall file all the necessary documents before the ld.CIT(A). Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.