KAILASH INFRASTRUCTURE ,GHAZIABAD vs. ITO, WARD- 1(3), GHAZIABAD

In these appeals, the assessee is aggrieved by the order of CIT(A) for deciding the appeals ex-parte qua the assessee and without going into the merits of the addition.

None appeared on behalf of the assessee and we find that the CIT(A) has passed the ex-parte order without allowing sufficient opportunity of hearing and without going into the merits of the case.

The learned DR for the Revenue on the other hand pointed out that sufficient opportunity has been afforded to the assessee.

We have heard Ld.DR for the Revenue and perused the record.

Under the provisions of Section 250(6) of the Income tax Act, 1961 (in short “Act”), it is incumbent upon the CIT(A) to decide the appeals after hearing the parties and state the points for determination, the decision thereon and also the reasons for the decision. While deciding the appeals, CIT(A) has no power to dismiss the appeals for non prosecution by relying on the ratio/s laid down in CIT vs. B.N. Bhattacharya & Another 118 ITR 461 (SC) and Late Tukoji Rao Holker vs. CWT 223 ITR 480 (MP). In these 2

Accordingly, we set aside the matter back to the file of the CIT(A) with direction to the CIT(A) to decide the issue on merits by a reasoned order, after affording reasonable opportunity of hearing to the assessee.

Hence these appeals are restored back to the file of CIT(A) to decide the issue on merits after affording reasonable opportunity of hearing to the assessee. The assessee is also directed to comply with notices issued by the CIT(A). The preliminary issue raised in these appeals are thus decided in favour of assessee. Since these appeals are being decided on the preliminary issue, we are not addressing the issue raised on merit.

In the result, these appeals of the assessee are allowed.