RAMESH HARISHANKAR TIWARI,NAGPUR vs. ITO, WARD 2, CHANDRAPUR

Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before the learned CIT(A) contending, inter alia, the Assessing Officer erred in restricting the claim of exemption u/sec.10(10)(i) of the Act to Rs.8,55,068/- instead of Rs.20 lahs and also erred in adding interest income of Rs.52,145/- as against Rs.31,607/- for the impugned assessment year. During the course of appellate proceedings, the learned CIT(A) issued various notices to the assessee. Since the assessee did not file his reply nor 3 ITA.No.587/NAG./2024 written submissions, the learned CIT(A) dismissed the appeal of assessee for non-prosecution.

Aggrieved by the order of the learned CIT(A), the assessee is in appeal before the Tribunal.

Learned Counsel for the Assessee, during the course of hearing, submitted that the learned CIT(A) dismissed the appeal of assessee without affording enough opportunity and simply relied on the order of the Assessing Officer and sustained the additions. He submitted that the assessee has received Gratuity amount from the Central Government which are exempt from tax and, therefore, submitted that one more opportunity may please be provided to the assessee to substantiate his case before the learned CIT(A) in the interest of justice.

The Learned DR on the other hand, relied on the orders of the lower authorities. He submitted that the assessee did not respond to the various notices issued by the learned CIT(A) and therefore, the learned CIT(A) rightly dismissed the appeal of assessee for non- prosecution. He submitted that it is the settled position of law that simply filing of appeal does not give any right to any assessee unless and until the said appeal is effectively pursued by the concerned 4 ITA.No.587/NAG./2024 assessees. He accordingly submitted that that the order of the learned CIT(A) be confirmed.

I have heard the arguments of both the sides, perused the orders of the authorities below and perused the material on record. I find that the learned CIT(A) has dismissed the appeal of assessee for non-prosecution but not decided the appeal on merits as contemplated u/sec.250(6) of the Act, according to which, the learned CIT(A) has to give reasons for decision and adjudication thereof. I, therefore, in the larger interest of justice, deem it fit and proper to restore the instant matter in issue back to the file of learned CIT(A) with a direction the decide the appeal on merits, by affording adequate opportunity of being heard to the assessee. Needless to say, it is the assessee’s sole risk and responsibility to plead and prove his case in consequential proceedings by furnishing all the information as called for by the learned CIT(A). The learned CIT(A) is at liberty to decide the appeal on merits and as per fact and law, if the assessee did not respond to the notice(s) issued to him during the course of consequential proceedings. Accordingly, the appeal of the assessee is allowed for statistical purposes. I hold and direct accordingly.