What did the Tribunal hold?

The Tribunal held that the CIT(A) failed to perform their statutory duty by not passing a speaking order with independent findings. The CIT(A)'s order was set aside.

The assessee's appeal before the CIT(A) was dismissed without considering the submissions filed. The CIT(A) merely relied on the Assessing Officer's findings without independent analysis.

What were the issues?

Whether the CIT(A) properly considered the assessee's submissions and provided an independent decision. The failure of the CIT(A) to pass a speaking order.

M/S the Gudiyatham Co Op Urban… vs ACIT | ITAT Chennai 2022

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: SHRI MAHAVIR SINGHAND Dr. M.L. MEENA

Hearing: 07.03.2022Pronounced: 08.03.2022

आदेश /O R D E R

PER BENCH:

This appeal by assessee is arising out of the order of National Faceless Appeal Centre (NFAC), Delhi vide order No.ITBA/NFAC/S/250/2021-22/1036999421(1) dated 17.11.2021 for the assessment year 2017-18 u/s. 250 of the Income Tax Act, 1961 (hereinafter ‘the Act’).

2 2. The first issue raised by assessee is that the submissions filed by the assessee on the record of CIT(A) are not considered and hence, the order rendered by CIT(A) is un-sustainable in the eyes of law.

At the outset, the ld.counsel for the assessee drew our attention to the findings of ld.CIT(A) and the relevant finding given in para 7 reads as under:- “7. Despite several opportunities given to the appellant as per record, no reply or evidence was furnished by him in the appeal proceeding. The AO has well discussed his observations and findings in the para 5 of the assessment order. Looking to the facts and circumstances and material available on record, i am not inclined to interfere with the decision of the AO. Therefore, these grounds are decided in negative and against the appellant. Thus, these grounds of appeal are dismissed.”

The ld.counsel stated that the CIT(A) except reproducing the facts mentioned in Form No.35 and the findings of the assessment order, he has not recorded even a single fact or no independent observation is given. Hence, he requested that the order of CIT(A) may be treated as nullity. When this was confronted to ld. Senior DR, he could not controvert the above statement made by the ld.counsel for the assessee.

3. After hearing both the sides, we noted that the CIT(A) only observed that the AO has well discussed his observations and 3 findings in para 5 of the assessment order and hence, he noted that he is not inclined to interfere with the decision of the AO. The appeal filed by the assessee is a statutory appeal and it is the right of the assessee to represent his case before the CIT(A) and the CIT(A) is duty bound to pass speaking order with his independent finding on each of the fact and each of the ground raised before him. But, the CIT(A) has not carried out his statutory duty. Hence, we set aside the order of CIT(A) and remand the matter back to his file for fresh adjudication. Needless to say, the CIT(A) will pass a speaking order after allowing reasonable opportunity of being heard to the assessee.

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

Order pronounced in the court on 8th March, 2022 at Chennai.

M/S THE GUDIYATHAM CO OP URBAN BANK LTD.,VELLORE vs. ACIT, CIRCLE-1, VELLORE

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