EKAMBARESHWAR HOUISNG DEVELOPMENT AND EXPORTS PVT LTD.,CHENNAI vs. ITO CORPORATE WARD 2(1), CHENNAI

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -13, Chennai, dated 27.06.2018 and pertains to assessment year 2002-03.

We heard Shri T. Vasudevan, the Ld.counsel for the assessee and Shri R. Clement Ramesh Kumar, the Ld. Departmental Representative. The CIT(Appeals) dismissed the appeal of the assessee since the assessee could not appear before him after receiving the notice of hearing. No doubt, the assessee did not appear before the CIT(Appeals). However, the CIT(Appeals)’s power is coterminous as that of the Assessing Officer. Therefore, the CIT(Appeals), being the first appellate authority, is expected to call for records from the Assessing Officer and dispose the appeal on merit even though the assessee did not appear before him. In other words, the CIT(Appeals) is not justified in dismissing the appeal for non-prosecution.

Moreover, the Ld.counsel for the assessee submitted that an opportunity may be given to the assessee to present its case before the CIT(Appeals). Taking into consideration of the factual situation, this Tribunal is of the considered opinion that giving one more opportunity to the assessee may not prejudice the interest of the Revenue in any way. Giving one more opportunity to the assessee would definitely promote the cause of justice. 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 that may be filed by the assessee and thereafter decide the issue on merit.

It is made clear that irrespective of the fact whether the assessee appears before the CIT(Appeals) or not, the appeal should be disposed of on merit by a speaking order. It is also made clear that if the assessee fails to appear, it is open to the CIT(Appeals) to dispose the appeal on merit on the basis of the material available on record.

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