M/S. CUE APPARELS PVT. LTD.,NEW DELHI vs. ACIT, NEW DELHI

This appeal by assessee has been directed against the order of Ld. CIT(A)–VI, New Delhi, dated 20.03.2014 for assessment year 2006-07, challenging the levy of penalty u/s 271(1)(c) of the Income Tax Act.

Ld. CIT(A) noted in the impugned order that various notices have been issued to the assessee for hearing of the appeal. However, the appeal was adjourned many times on the request of the assessee’s counsel. On the last date of hearing none attended appellate proceedings, the Ld. CIT(A), therefore, dismissed the appeal of the assessee in default.

After considering the rival submissions, we are of the view that the matter requires reconsideration at the level of Ld. CIT(A). According to section 250(6) of the Income Tax Act, Ld. CIT(A) is required to pass reasoned order by mentioning point for determination in the order and reasons for decisions. Even if, the assessee did not appear before him for disposal of the appeal, Ld. CIT(A) is required to pass reasoned order by mentioning point for determination in the impugned order. Thus, Section 250(6) of the Act have been violated, therefore, order of Ld. CIT(A) cannot be sustained in law. The matter requires reconsideration at the level of the Ld. CIT(A).

In view of the above discussions, we set aside the order of the authorities below and restore the appeal of the assessee to his file with direction to re-decide the appeal of the assessee on merit giving reasons for decision in the appeallate order by giving reasonable sufficient opportunity of being heard to the assessee. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 13.11.2017. Sd/- Sd/- (L. P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER Date: 13.11.2017 @m!t