What did the Tribunal hold?

The ITAT held that the CIT(A) should have decided the appeal on merits with reasons, even in the absence of the assessee, as per Section 250(6) of the IT Act. Dismissing for non-prosecution without considering merits was not sustainable.

The assessee's appeal before the CIT(A) was dismissed in limine due to non-prosecution as the assessee did not appear for hearings. The assessee appealed this dismissal to the ITAT.

What were the issues?

Whether the CIT(A) can dismiss an appeal for non-prosecution without deciding the merits of the case and providing reasons for the decision.

Sharma Star Steels Pvt. Ltd., New… vs ITO | ITAT Delhi 2019

Income Tax Appellate Tribunal, DELHI BENCHES “SMC”: DELHI

Before: SHRI BHAVNESH SAINI

Hearing: 11.11.2019Pronounced: 11.11.2019

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “SMC”: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.No.7572/Del./2018 Assessment Year 2009-2010 M/s. Sharma Star Steels Income Tax Officer Pvt. Ltd., 103, Wing-II, Ward-23(1), Room No.234, vs. Hans Bhawan, I.P. Estate, 2nd Floor, C.R. Building, New Delhi – 110 002. I.P. Estate, PAN AAMCS6925K New Delhi – 110 002. (Appellant) (Respondent) For Assessee : Shri Sumit Goel, C.A. For Revenue : Shri Pradeep Singh Gautam, Sr. D.R. Date of Hearing : 11.11.2019 Date of Pronouncement : 11.11.2019 ORDER PER BHAVNESH SAINI, J.M.

This appeal by assessee has been directed against the Order of the Ld. CIT(A)-28, New Delhi, Dated 19.09.2018, for the A.Y. 2009-2010.

I have heard the Learned Representative of both the parties.

2 ITA.No.7572/Del./2018 M/s. Sharma Star Steels Pvt. Ltd., New Delhi. 3. The Ld. CIT(A) noted in the impugned order that many notices have been issued to the assessee for hearing of the appeal, but, there were no response from the side of the assessee. In the absence of assessee, the Ld. CIT(A) recorded that assessee is not interested in prosecuting the appeal, therefore, appeal of assessee were dismissed in limine.

After considering the rival submissions, I am of the view that the matter requires reconsideration at the level of Ld. CIT(A). According to Section 250(6) of the I.T. Act, 1961, the Ld. CIT(A) is required to mention point for determination and reasons for decision in his appellate order. Even if the assessee did not appear before Ld. CIT(A), the Ld. CIT(A) should have to decide the appeal on merits giving reasons for decision in the appellate order. However, the Ld. CIT(A) simply dismissed the appeal of assessee for non-prosecution. Therefore, the order cannot be sustained in law.

3 ITA.No.7572/Del./2018 M/s. Sharma Star Steels Pvt. Ltd., New Delhi. 5. In view of the above, I set aside the impugned order of Ld. CIT(A)-28, New Delhi and restore the appeal of assessee to his file with a direction to re-decide the appeal of assessee in accordance with law, giving reasons for decision in the appellate order by giving reasonable and sufficient opportunity of being heard to the assessee.

In the result, appeal of assessee allowed for statistical purposes.

Order pronounced in the open Court.

SHARMA STAR STEELS PVT. LTD.,NEW DELHI vs. ITO, WARD- 23(1), NEW DELHI

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