M/S. PRESTIGE AVENUES LIMITED, HYD,HYDERABAD vs. DCIT, CENTRAL CIRCLE-VII, HYDERABAD

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ITA 741/HYD/2011Status: DisposedITAT Hyderabad06 January 2025AY 2006-07Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MADHUSUDAN SAWDIA (Accountant Member)8 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) is duty-bound to dispose of an appeal on merits, even when dismissing it ex parte for non-prosecution, by framing points of determination. The matter was remanded to the CIT(A) for a de novo decision on merits after affording a reasonable opportunity of hearing to the assessee.

What were the facts?

The assessee, an individual, filed an ITR for AY 2022-23 declaring Rs. 3,86,750. Telangana Police seized Rs. 7,35,000 cash, which the AO assessed as unexplained money. The CIT(A) subsequently dismissed the assessee's appeal ex parte for non-prosecution.

What were the issues?

Whether the CIT(A) can dismiss an appeal ex parte for non-prosecution without deciding the appeal on merits and framing points of determination.

Which sections of the Income-tax Act were involved?

Section 250(6)

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Income Tax Appellate Tribunal, Hyderabad ‘SMC’ Bench, Hyderabad

Before: SHRI INTURI RAMA RAO

Hearing: 07/10/2025

ORDER PER INTURI RAMA RAO : This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-11, Hyderabad [CIT(A)] dated 21.02.2025 for Assessment Year (AY) 2022-23.

2.

Brief facts of the case are that the assessee is an individual And filed his Return of income for the A.Y. 2022-23 on 30.07.2022 declaring income of Rs.3,86,750/-. The Telangana State Police seized cash of Rs.7,35,000/- from the assessee after following due procedure. The Assessing Officer on consideration of explanation filed in response to the notice issued brought to tax the seized cash as unexplained money of the assessee, accordingly assed the income of the assessee.

3.

Being aggrieved by the order of Assessing Officer, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non prosecution.

4.

Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.

5.

None appeared on behalf of assessee. After hearing the Ld. DR, I find that the learned CIT(A) dismissed the appeal in limine for non prosecution. As contemplated u/s. 250(6) of the Act the CIT(A) is required to frame points of determination followed by a detailed discussion thereupon before passing the order. It is the settled position of law that the CIT(A), even while disposing of the appeal exparte, is duty bound to dispose of the appeal on merits. Reliance in this regard can be placed on the decision of the Hon'ble Bombay High Court in the case of PCIT vs. Premkumar Arjundas Luthra 279 CTR 614. Therefore, in the light of the above legal position we are of the considered view that the matter requires to be remanded to the file of the CIT(A) with the direction to dispose of the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee.

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