ASHI LTD,DELHI vs. DCIT, CIRCLE-3(2), NEW DELHI

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ITA 3952/DEL/2018Status: DisposedITAT Delhi16 October 2018AY 2014-153 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT held that the CIT(A) erred by dismissing the appeal for non-prosecution without deciding on merits. The order of the CIT(A) was set aside and the appeal was restored for re-adjudication.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed for default as the assessee did not appear. The ITAT noted that the CIT(A) should have decided the appeal on merits even in the absence of the assessee.

What were the issues?

Whether the CIT(A) can dismiss an appeal for default without deciding on merits, and the requirement for the CIT(A) to provide reasons for their decision.

Which sections of the Income-tax Act were involved?

Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC” : DELHI

Before: SHRI BHAVNESH SAINI

Hearing: 16.10.2018Pronounced: 16.10.2018

For Assessee : -None- For Revenue : Dr. Anjula Jain, Sr. D.R. Date of Hearing : 16.10.2018 Date of Pronouncement : 16.10.2018 ORDER PER BHAVNESH SAINI, J.M. This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-1, New Delhi, Dated 13.03.2018, for the A.Y. 2014-2015.

2.

The Ld. CIT(A) noted that several notices have been issued to the assessee for disposal of the appeal on several dates. However, none attended on behalf of the assessee. The 2 ITA.No.3952/Del./2018 M/s. Ashi Limited, Delhi. Ld. CIT(A), therefore, dismissed the appeal of assessee for default of the assessee holding that assessee is not interested in disposal of the appeal.

3.

After hearing the Ld. D.R. I am of the view that the matter requires reconsideration at the level of the Ld. CIT(A). According to Section 250(6) of the I.T. Act, 1961, the Ld. CIT(A) is required to mention point for determination and reasons for decision in his appellate order. Even if the assessee did not appear before Ld. CIT(A), the Ld. CIT(A) should have to decide the appeal on merits giving reasons for decision in the appellate order. However, the Ld. CIT(A) simply dismissed the appeal of assessee for non- prosecution. Therefore, the order cannot be sustained in law. I, accordingly, set aside the impugned order of Ld. CIT(A)-1, New Delhi, and restore the appeal of assessee to his file with a direction to re-decide the appeal of assessee in accordance with law, giving reasons for decision in the 3 ITA.No.3952/Del./2018 M/s. Ashi Limited, Delhi. appellate order by giving reasonable and sufficient opportunity of being heard to the assessee.

5.

In the result, appeal of assessee is allowed for statistical purposes.

Order pronounced in the open Court.

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