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Facts
The assessee's income tax assessment for AY 2017-18 was completed by the ACIT. The assessee filed an appeal before the CIT(A), which was dismissed ex parte for non-prosecution without addressing the merits of the case.
Held
The Tribunal held that the CIT(A) is obligated to dispose of appeals on merits, even when heard ex parte. Citing the Bombay High Court, the Tribunal remanded the case back to the CIT(A) for fresh adjudication on merits, ensuring the assessee is given a reasonable opportunity of hearing.
Key Issues
Whether the CIT(A) can dismiss an appeal ex parte for non-prosecution without deciding on its merits, or if it is duty-bound to adjudicate the appeal de novo.
Sections Cited
143(3)
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, 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 19.01.2023 for Assessment Year (AY) 2017-18.
Brief facts of the case are that the assessee filed her return of income for AY 2017-18 on 03.111.2017 declaring total income of Rs. 1,03,18,640/-. Against the said return of income, the assessment was completed by the ACIT, Circe 2(1), Thrissur (hereinafter called
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non prosecution placing on the decision of the Hon'ble Bombay High Court in the case of M/s. Chemipol vs. Union of India in Excise Appeal No. 62 of 2009 and a few other orders.
Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.
We have heard the rival contentions of both the parties and perused the material available on record. We find that the learned CIT(A) dismissed the appeal in limine for non prosecution. 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.
Order pronounced in the open court on 4th February, 2025.