SHARSH FINANCE & INVESTMENT CO. PVT. LTD.,NEW DELHI vs. ACIT, CENTRAL CIRCLE- 25, NEW DELHI

ITA 1430/DEL/2018Status: DisposedITAT Delhi20 December 2019AY 2014-154 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) erred in deciding the appeals ex-parte without affording sufficient opportunity and without a reasoned order. The matter was set aside to the CIT(A) for a fresh decision on merits.

What were the facts?

The assessee's appeals were decided ex-parte by the CIT(A) without a proper hearing or consideration of the merits. The assessee was aggrieved by this ex-parte decision.

What were the issues?

Whether the CIT(A) can decide an appeal ex-parte without providing adequate opportunity and a reasoned order. The validity of an ex-parte order passed without considering the merits of the case.

Which sections of the Income-tax Act were involved?

Section 250(6)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Estate of Late Tukojirao Holkar v. CWT
223 ITR 480 · 1997 · HC
2,040 citing
CIT v. B.N. Bhattacharya & Another
118 ITR 461 · 1997 · SC
1,656 citing

Income Tax Appellate Tribunal, DELHI BENCH, ‘G’, NEW DELHI

Before: MS. SUSHMA CHOWLA & Sh. N.K. BILLAIYA

Hearing: 18.12.2019Pronounced: 20.12.2019

आदेश / ORDER आदेश आदेश आदेश

PER SUSHMA CHOWLA, JM: These two appeals filed by assessee are against order of CIT(A)-XXVI, New Delhi, dated 27/12/2017 relating to assessment years 2013-14 to 2014-15.

In both 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 these 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 these 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 facts and circumstances, where the CIT(A) had dismissed these appeals by applying the above said ratios, the order of the learned CIT(A) suffers from infirmity.

The CIT(A) while deciding the issue on merits have also to give reasons for coming to the conclusion and in the absence of the same, the order of the CIT(A) again suffers from infirmity. In these appeals, we find that the CIT(A) has dismissed the appeals ex-parte qua the assessee and had failed to decide the appeals by passing reasoned assessment order.

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. Further the assessee is also directed to appear before the CIT(A) and participate in the appellate proceedings. These appeals are thus decided on this preliminary issue without going into the merits of the addition.

Hence, both 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 is 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, both appeals of the assessee are allowed.

Order pronounced in the open court on 20th day of December, 2019.

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