PSN EDUCATIONAL AND CHARITABLE TRUST,NAGERCOIL vs. ITO, NAGERCOIL

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ITA 248/CHNY/2020Status: DisposedITAT Chennai30 December 2020AY 2006-073 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) cannot dismiss an appeal for default without adjudicating the issues on merits, unless specifically authorized by statute. The appellate authority is bound to decide the appeal on merits even in the absence of the assessee.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed ex-parte for non-appearance. This was the second time the appeal was dismissed for default, with the previous order being set aside by the Tribunal and remanded back.

What were the issues?

Whether an appellate authority can dismiss an appeal for default without deciding the case on merits. The jurisdiction of the CIT(A) to dismiss an appeal for non-appearance.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI MAHAVIR SINGHAND SHRI G. MANJUNATHA

Hearing: 30.12.2020Pronounced: 30.12.2020

आदेश /O R D E R PER MAHAVIR SINGH, VP: This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals)-2, Madurai, in dated 18.12.2019. The Assessment was framed by ITO, Ward I(1), Nagercoil U/s 143(3) r.w.s.147 of the

Income Tax Act, 1961 (hereinafter ‘the Act’) for the A.Y. 2006-07 vide order dated 20.01.2014.

2.

The assessee carried the matter in appeal before CIT(A), who dismissed the appeal ex-parte and the matter went to Tribunal in vide order dated 27.03.2015, wherein, the order of CIT(A) was set aside and the matter was remanded back to his file. Consequently the appeal was referred back to CIT(A), who in this appeal i.e., the impugned order again dismissed the appeal ex-parte but by not adjudicating the issues at all, he dismissed the appeal for default i.e., non-appearance of assessee or its authorized representative. Aggrieved the assessee filed this appeal before Tribunal. Before Tribunal, the assessee has preferred many grounds.

3.

At the outset, it is noticed that the order of CIT(A) is dismissing the appeal of assessee for default i.e., for non- appearance by assessee or its authorized representative. The ld.counsel as well as ld.senior Departmental Representative fairly conceded that this is an ex-parte order and appeal dismissed for default on the part of the assessee. There is no discussion on merits in this order. Can CIT(A) dismiss the appeal for default on the part of the assessee and not adjudicate any of the issue

1.

We are of the view that unless the statute authorizes quasi judicial authority to dismiss the appeal for default expressly or by inevitable implication, the appellate authority has to decide the appeal on merits and not to dismiss it for default. The appellate authority has no jurisdiction to dismiss the appeal for default and he is bound to decide the appeal on merits even in the absence of the assessee. Hence, we set aside the order of the CIT(A) and restore the matter back to his file for deciding the issues on merits, in case the assessee does not appear. Needless to say that CIT(A) will allow reasonable opportunity of being heard to the assessee.

4.

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

Order pronounced in the court on 30th December, 2020 at Chennai.

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