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Facts
The assessee, a firm engaged in construction, filed its return of income for AY 2015-16 showing a total income of Rs. 35,790/-. The Assessing Officer (AO) made an addition of Rs. 5,96,000/- under section 43CA, assessing the total income at Rs. 6,31,790/-. The assessee appealed to the CIT(A), who dismissed the appeal ex-parte without providing an adequate opportunity of being heard.
Held
The Tribunal held that the CIT(A) had failed to pass a speaking order, as required by Section 250(6) of the Income Tax Act, 1961. The CIT(A) did not adjudicate the grounds of appeal on merit, nor did it provide reasons for its decision, which was a violation of natural justice principles. The Tribunal also noted that the law does not empower the CIT(A) to dismiss an appeal for non-prosecution.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte without providing proper opportunity of hearing and without passing a speaking order. Whether the assessment order passed by the AO was a speaking order and whether the addition made under section 43CA was justified.
Sections Cited
144, 250(6), 43CA, 143(2), 142(1), 246A, 251(1)(a), 251(1)(b), 251(2)
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Income Tax Appellate Tribunal, PATNA BENCH AT KOLKATA
Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA
order
: January 28th, 2025 ORDER
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals) ADDL/JCIT(A)-1, Chandigarh [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2015-16 dated 29.02.2024, which has been passed against the assessment order u/s 144 of the Act, dated 30.12.2016.