SMT. BALASUBRAMANIAN MANJU,CHENNAI vs. ACIT NON CORPORATE CIRCLE 9 (1), CHENNAI

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -10, Chennai, dated 28.03.2018 and pertains to assessment year 2014-15.

Shri S. Sridhar, the Ld.counsel for the assessee, submitted that the CIT(Appeals) confirmed the disallowance of ₹5,46,72,875/- only on the ground that the assessee had not appeared before him.

We heard Shri AR.V. Sreenivasan, the Ld. Departmental Representative also. We have perused the order of the CIT(Appeals). The CIT(Appeals) found that the assessee did not cooperate during the scrutiny proceeding and she did not appear before him when the appeal was posted for hearing on several dates. The fact remains that the CIT(Appeals) being the first appellate authority and having jurisdiction coterminous with that of the Assessing Officer, is expected to call for records from the Assessing Officer and reappreciate the material available on record and decide the issue in accordance with law. The non-appearance of the assessee before the CIT(Appeals) will not empower the CIT(Appeals) to dismiss the appeal. A perusal of the impugned order of the CIT(Appeals) shows that he has not reappreciated the material available on record and there was no discussion in the impugned order on merit.

This Tribunal time and again found that the CIT(Appeals) has no authority or power to dismiss the appeal for non-appearance of the assessee. In case the assessee has not appeared before him or failed to cooperate with the CIT(Appeals), it is open to the CIT(Appeals) to call for relevant record from the Assessing Officer to reconsider the material available on record and dispose the appeal on merit. Such an exercise was not done by the CIT(Appeals). Therefore, this Tribunal is unable to uphold the order of the CIT(Appeals). Accordingly, the order of the CIT(Appeals) is set aside and the entire issue is remitted back to the file of the CIT(Appeals). The CIT(Appeals) shall re-examine the matter in the light of the material available on record. The CIT(Appeals) shall give a reasonable opportunity to the assessee by issuing necessary notice of hearing. In case the assessee fails to appear before the CIT(Appeals) in response to the notice, it is open to the CIT(Appeals) to call for relevant record from the Assessing Officer and reappreciate the material available on record and pass a speaking order with regard to issues raised by the assessee.

With the above observation, the appeal of the assessee is allowed for statistical purposes.