M.N.PADMANABHAN (HUF),COIMBATORE vs. ACIT NON CORPORATE CIRCEL 2, COIMBATORE

Shri K. Raghu, the Ld. Representative for the assessee submitted that the CIT(A) has dismissed the appeal for non- prosecution without considering the grounds raised by the assessee on merit. Therefore, the matter may be remitted back to the file of AO for re-consideration.

Shri J. Pavitran Kumar, the Ld. Departmental Representative submitted that the matter may be remitted back to CIT(A) for re- consideration.

Having heard the Ld. Representative for the assessee and the Ld. Departmental Representative, this Tribunal is of the considered opinion that that the CIT(A) has no authority or jurisdiction to dismiss the appeal for non-prosecution. Section 250(4) and 251 of the Income Tax Act, 1961 (in short ‘the Act’) gives enormous power to the CIT(A) to re-examine the matter if necessary make further enquiry and pass an order on merit by enhancing the assessment. Such an onerous responsibility conferred on CIT(A) has been simply ignored by CIT(A) without considering the grounds raised by the assessee. There may be various reasons for the assessee not appearing before CIT(A) after receiving the notices. One of the reasons, presumably the assessee might have intended to avoid enhancement of assessment.

Therefore, the CIT(A) is expected to exercise his statutory power conferred u/s. 250(4) of the Act. Even though, this Tribunal time and again pointed out that the CIT(A) has no power to dismiss the appeal for non-prosecution, the present trend of the CIT(A)s appear to dismiss the appeals for non-prosecution, presumably to reach the target fixed by the CBDT for disposal of appeals. This kind of tendency cannot be allowed to continue any further. Hoping that the CIT(A) will take into consideration all the statutory provisions while considering the appeal filed by the assessee, we are not commenting anything further. Suffix to set aside the order of CIT(A) and remit the matter back to the file of CIT(A) for re-consideration. Accordingly, the orders of CIT(A) is set aside and the entire issue raised by the assessee on merit is remitted back to the file of the CIT(A). The CIT(A) shall give sufficient opportunity of hearing to the assessee and dispose of the appeal on merit irrespective of the fact whether the assessee appeared before him or not. If the assessee has not appeared before the CIT(A) after receiving notice of hearing, it is open to the CIT(A) to call for the records of the AO and re-appreciate the material available on record thereafter, dispose the appeal on merit by a speaking order. With the above observation, the appeal filed by the assessee is allowed for statistical purpose.

In the result, the appeal filed by the assessee stands allowed for statistical purpose.