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Facts
The assessee's appeal before the CIT(A) against an assessment order for AY 2018-19, which determined income at Rs.1,09,89,981/- (against returned income of Rs.4,96,610/-), was dismissed. The assessee contended that the CIT(A) passed an ex-parte order without providing a reasonable opportunity of being heard.
Held
The Tribunal held that the CIT(A) has a statutory duty under Section 250(6) of the Income Tax Act to pass a speaking order on the merits of the appeal. Consequently, the Tribunal set aside the impugned order of the CIT(A) and remanded the matter back for a de novo order after providing the assessee with a reasonable opportunity of being heard.
Key Issues
Whether the CIT(A) erred in passing an ex-parte order without providing a reasonable opportunity of being heard and failed to pass a speaking order on the merits of the appeal.
Sections Cited
143(3), 143(3A), 143(3B), 80JJA, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, LUCKNOW BENCH ‘B’, LUCKNOW
Before: SHRI SUDHANSHU SRIVASTAVA & SHRI ANADEE NATH MISSHRA
19/04/2024 (DIN & Order No.ITBA/NFAC/S/250/2024-25/1064233400(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. Grounds of appeal are as under:
“1. Because on the facts and in the circumstances of the case the order of Ld. CIT(A) is bad in law and deserves to be quashed being illegal.
Because on the facts and in the circumstances of the case the order of the Ld. CIT(A) is bad in law and being passed by the Ld. AO without assuming proper jurisdiction.
Because on the facts and in the circumstances of the case the order of the Ld. CIT(A) is bad in law and being passed by the Ld. AO without assuming proper jurisdiction.
Because on the facts and in the circumstances of the case the order of the Ld. CIT(A) as well as assessment order is bad in law being any finding that forms reason to believe that income has escaped assessment.
Because on the facts and in the circumstances of the case, the assessee was not well due to sever Covid conditions in the month of April, 2021 and subsequently expired on 06/05/2021. The Assessment Order was passed without providing adequate opportunity of being heard.
Because on the facts and in the circumstances of the case the Ld. CIT (A) has not considered that the assessment for A.Y. 2017-18 had already been completed u/s 143(3) of the Act passed by the Ld. Income Tax Officer, Lucknow wherein first time the claim of deduction u/s 80JJA was allowed to the assessee. Further during relevant Assessment Year no new claim u/s 80JJA was claimed by the assessee.”
(B) In this case, assessment order dated 15/04/2021 was passed by the Assessing Officer under section 143(3) read with sections 143(3A) & 143(3B) of the I. T. Act whereby the income of the assessee was determined at Rs.1,09,89,981/- against the returned income of Rs.4,96,610/-. The assessee filed appeal in the office of learned CIT(A). Vide impugned appellate order dated 19/04/2024, the learned CIT(A) dismissed the assessee’s appeal. Aggrieved, the assessee has filed the present appeal in the Income Tax Appellate Tribunal.
(C) At the time of hearing, the learned Authorized Representative for the assessee submitted that the learned CIT(A) has passed the ex-parte order qua the assessee without providing reasonable opportunity of being heard to the appellant assessee. He further submitted that the learned CIT(A) did not pass speaking order on merits on the various grounds of appeal. He further submitted that the issues in dispute should be restored back to the file of the learned CIT(A) with the direction to pass speaking order on merits on all the grounds of appeal after providing reasonable opportunity to the assessee. Learned D.R. for Revenue expressed no objection to this. We have heard the rival parties and have gone through the materials placed on record. We are of the considered view, in view of section 250(6) of the I. T. Act, that the learned CIT(A) has statutory duty to pass a speaking order on merits on the various grounds of appeal filed by the assessee. Having regard to the same, and in view of the submissions made by the Learned A. R. for the assessee, we set aside the impugned appellate order dated 19/04/2024 to the file of learned CIT(A) and we direct the learned CIT(A) to pass de novo order on merits in accordance with law after providing reasonable opportunity of being heard to the assessee.
(E) In the result, the appeal of the assessee is partly allowed for statistical purposes.
(Order pronounced in the open court on 23/01/2025)