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Facts
The assessee, a partnership firm, filed its income tax return for AY 2008-09. An assessment was completed u/s 143(3) r.w.s. 254, which was subsequently appealed to the Tribunal and remanded for de novo assessment. After the AO reiterated additions, the assessee's further appeal to the CIT(A) was dismissed ex parte for non-prosecution.
Held
The Tribunal held that the CIT(A) is legally bound to dispose of appeals on merits, even if dismissed ex parte, as mandated by Section 250(6) and judicial precedents. Consequently, the matter was remanded to the CIT(A) for a de novo disposal on merits, ensuring a reasonable opportunity of hearing for the assessee.
Key Issues
Whether the CIT(A) can dismiss an appeal ex parte for non-prosecution without deciding it on merits, and if such a dismissal is in accordance with the Income Tax Act.
Sections Cited
143(3), 254, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI SOUNDARARAJAN K., JM
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)], dated 15.02.2024 for Assessment Year (AY) 2008-09.
Brief facts of the case are that the appellant is a partnership firm engaged in the business of trading in cement. The return of income for AY 2008-09 was filed on 20.09.2008 disclosing income of Rs. 10,82,510/-. Against the said return of income, the assessment Janatha Trading Corporation was completed by the Income Tax Officer, Ward-1, Aluva (hereinafter called "the AO") vide order dated 20.12.2010 passed u/s. 143(3) r.w.s. 254 of the Income Tax Act, 1961 (the Act) at a total income of Rs. 71,99,170/-.
Being aggrieved, an appeal was filed before the CIT(A) contesting the addition made by the AO. The CIT(A) dismissed the appeal.
Being aggrieved, the appellant had filed an appeal before Tribunal.
The Tribunal vide order dated 20.09.2018 passed in set aside the issue to the AO for de novo assessment. Pursuant to the order passed by the Tribunal assessment order was passed by the AO vide order dated 20/12/2010 passed us 143(3) r.w.s. 254 of the Act reiterating the additions made in the original assessment.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non- prosecution.
Being aggrieved, the appellant is in appeal before us in the present appeal.
We find that the learned CIT(A) dismissed the appeal in limine for non prosecution. As contemplated u/s. 250(6) of the Act the Janatha Trading Corporation CIT(A) is required to frame points of determination followed by a detailed discussion thereupon before passing the order. It is the settled position of law that the CIT(A), even while disposing of the appeal exparte, is duty bound to dispose of the appeal on merits. Reliance in this regard can be placed on the decision of the Hon'ble Bombay High Court in the case of PCIT vs. Premkumar Arjundas Luthra 279 CTR 614. Therefore, in the light of the above legal position we are of the considered view that the matter requires to be remanded to the file of the CIT(A) with the direction to dispose of the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes
Order pronounced in the open court on 21st February, 2025. 10.