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Income Tax Appellate Tribunal, ‘A’ SMC BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN
आदेश /O R D E R
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 2014-15.
Shri I. Dinesh, the Ld.counsel for the assessee, submitted that the assessee filed appeal before the CIT(Appeals). However, the CIT(Appeals) disposed of the appeal for non-prosecution without discussing anything on merit. Therefore, the Ld.counsel submitted that an opportunity may be given to the assessee to place the facts before the CIT(Appeals).
On the contrary, Shri Sanath Kumar Raha, the Ld. Departmental Representative, submitted that the assessee filed appeal before the CIT(Appeals). The appeal was fixed for hearing on several occasions and in fact, five notices of hearing were issued to the assessee. The assessee did not respond even for single notice of hearing. Therefore, according to the Ld. D.R., the CIT(Appeals) found that the law aids those who are vigilant and not those who sleep upon their rights. Accordingly the appeal was dismissed.
Having heard the Ld.counsel for the assessee and the Ld. D.R., this Tribunal is of the considered opinion that that the CIT(Appeals) has no authority or jurisdiction to dismiss the appeal for non-prosecution. Under the scheme of Income-tax Act, the CIT(Appeals) is the first appellate authority. He has all the powers of the Assessing Officer. In other words, the CIT(Appeals) has coterminous power as that of the Assessing Officer. The CIT(Appeals) is empowered to enhance the assessment during the course of appellate proceeding. By dismissing the appeal for non- prosecution, the CIT(Appeals) disowns his responsibility of increasing the assessment in case it is needed. Therefore, this Tribunal is of the considered opinion that the CIT(Appeals) is bound to dispose the appeal on merit on the basis of the material available on record irrespective of the fact whether the assessee appeared before him or not. Many times, this Tribunal has pointed out that the CIT(Appeals) has no power to dismiss the appeal for non- prosecution. Inspite of repeated orders of this court, some of the CIT(Appeals) continue to dismiss the appeal for non-prosecution.
This Tribunal is confident that this would not happen in future. In view of the above, this Tribunal is unable to uphold the order of the CIT(Appeals) and accordingly the order of the CIT(Appeals) is set aside and the entire issue raised by the assessee is remitted back to the file of the CIT(Appeals). The CIT(Appeals) shall give sufficient opportunity to the assessee and thereafter decide the issue on merit in accordance with law. It is made clear that if the assessee has not responded to the notice of hearing, it is open to the CIT(Appeals) to dispose the appeal on merit after calling for the records from the Assessing Officer.
With the above observation, the appeal filed by the assessee stands allowed for statistical purposes.