Loading judgment…
Facts
The assessee's appeals were decided ex-parte by the CIT(A) without dealing with the merits of the additions. The assessee claimed that notices of hearing were not received. The Tribunal noted that the CIT(A)'s order was silent on the service of notices.
Held
The CIT(A) has a duty to dispose of matters judiciously by deciding the merits of the additions, irrespective of the assessee's appearance. The Tribunal cited a Bombay High Court judgment to support this.
Key Issues
Whether the CIT(A) erred by deciding the appeals ex-parte without considering the merits of the additions, and if notices of hearing were properly served on the assessee.
Sections Cited
68, 272A(2)(e), 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: S/SHRI INTURI RAMA RAO & SHRI PRAKASH CHAND YADAV
PER PRAKASH CHAND YADAV, JUDICIAL MEMBER:
Both the appeals of the assessee are arising from the order of the ld Commissioner of Income Tax (Appeal) NFAC, Delhi, dated 22.1.2025 having DIN No.ITBA/APL/S/250/2024-25/1072425463 (1) and relates to assessment year 2015-16 and order dated 16.12.2024 having DIN No. ITBA/APL/S/250/2024-25/107124894(1) and relates to assessment year 2016-17. arising from the order of the Ld. AO, wherein, the Ld. AO has brought to Page 2 of 5 tax an amount of Rs.44,12,615/- as unexplained cash credit u/s 68 of relating to assessment year 2015-16 is against levy of penalty u/s.272A(2)(e) of the Act. Since both these appeals are relating to common assessee, we are deciding these appeals by way of this common order.
At the outset, it is noted that both these appeals have been decided by the ld CIT(A ) exparte. Ld CIT(A)has just confirmed the additions made by the Assessing Officer and decided the appeal without dealing with the merits of the addition in terms of provisions of section 250(6) of the Act.
Ld counsel for the assessee prayed that the matters may be restored to the file of the ld CIT(A) for deciding afresh inasmuch as no notice of hearing issued by the office of the ld CIT(A) has been received by the assessee.
Ld Sr.DR relied upon the orders of the authorities below.
We have heard the rival submissions and perused the materials available on record. We observe that the office of the ld CIT(A) has issued around four notices of hearing to the assessee. We further observe that the order of the ld. CIT(A) is silent with respect to the service of notice of hearing upon the assessee. It is settled position of .
Page 3 of 5 law that the ld CIT(A) is duty bound to dispose of the matters in a judicious manner in terms of provisions of section 250(6) of the Act. It is expected from the ld CIT(A) that he will decide the merits of the case irrespective of the fact that whether anybody appeared from the side of the assessee or not. A reference can be made to the judgment of Hon’ble Bombay High Court in the case of Prem Kumar Arjundas Luthra (HUF ) (2017) 297 ITR 614 (Bom), wherein, the Hon’ble High Court has held that the ld CIT(A) is duty bound to decide the appeals after dealing with the merits of the additions made by the Assessing Officer.
Therefore, we hereby restore these appeals to the file of the ld CIT(A) to decide afresh. Needless to say that the ld CIT(A) will grant meaningful opportunity to the assessee before passing any order.
In the result, both the appeals of the assessee stand allowed for statistical purposes.
Order pronounced in court on 20th day of August, 2025