IFMR HOLDINGS PRIVATE LIMITED,CHENNAI vs. JCIT (OSD) CORPORATE CIRCLE 2(2), CHENNAI

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -5, Chennai, dated 21.02.2019 and pertains to assessment year 2015-16.

Sh. Saroj Kumar Parida, the Ld.counsel for the assessee, submitted that the CIT(Appeals) extracted the grounds of appeal filed by the assessee before him and findings of the Assessing Officer, in his order and upheld the order of the Assessing Officer without any further discussion. According to the Ld. counsel, the application of mind to the material available on record is not explicit in his order. Therefore, the Ld.counsel submitted that the matter may be remitted back to the CIT(Appeals) for reconsideration.

We heard Ms. R. Anitha, the Ld. Departmental Representative also. As rightly submitted by the Ld.counsel for the assessee, the CIT(Appeals) extracted the grounds of appeal filed by the assessee before him and the findings of the Assessing Officer in the assessment order and found that the business loss and unabsorbed depreciation cannot be allowed.

Under the scheme of the Income-tax Act, the CIT(Appeals) being the first appellate authority, has all the powers of the Assessing Officer. In other words, the power of the CIT(Appeals) is coterminous with that of the Assessing Officer. Whatever the Assessing Officer omitted to do in the course of assessment proceeding can very well be done by the CIT(Appeals). The CIT(Appeals) is empowered to enhance the assessment after re- appreciating the material available on record. Therefore, it is obvious that the CIT(Appeals) has significant role to play in the assessment proceedings and as first appellate authority.

This Tribunal is of the considered opinion that the CIT(Appeals), being the first appellate authority, is expected to re- appreciate the material available on record irrespective of the fact whether the assessee appeared before him or not and record his own findings in the conclusion reached by him. In this case, the CIT(Appeals) has not applied his mind to the material available on record. The application of mind does not reflect in the order of the CIT(Appeals). Therefore, this Tribunal is of the considered opinion that the matter needs to be re-examined by the CIT(Appeals).

With the above observation, the appeal filed by the assessee stands allowed for statistical purposes.