SRI S.PALANIVELU,MADURAI vs. ACIT NON CORPORATE CIRCLE-1, MADURAI

Brief facts of the case are that the assessee is a transport contractor of Tamilnadu Civil Supplies Corporation & Central Warehousing Ltd. filed his return of income for the assessment year 2014-15 on 27.11.2014 admitting income of Rs.17,41,220/-. The case has been selected for scrutiny and notice u/s.143(2) dated 28.09.2015 was issued to the assessee.

We have heard both the parties, perused material available on record and gone through orders of the authorities below. Admittedly, during the appellate proceedings before the learned CIT(A), the assessee neither appeared nor furnished any details to justify his claim and to controvert findings recorded by the Assessing Officer and thus, appeal has been disposed off on technical grounds. But, fact remains that on perusal of appellate order, the learned CIT(A) dismissed appeal filed by the assessee for non-prosecution without discussing the issue on merits. No doubt, the appellate authority has left with no option, but to dispose off appeal, when the appellant has not appeared despite notice of hearing was provided, but such appeal should be disposed off on merits on the basis of materials available on record. In this case, appeal of the assessee was disposed off on technical grounds for non- prosecution without considering issue on merits. In our consider view, the learned CIT(A) erred in not dealing with issues on merits. Therefore, we are of the considered view that the issue needs to go back to the file of learned CIT(A) to give one more opportunity of hearing to the assessee to file necessary evidences and explain his case. Hence, we set aside order of the learned CIT(A) and restore appeal to the file of learned CIT(A) and direct the CIT(A) to reconsider the issue, after providing reasonable opportunity of hearing to the assessee.