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Facts
The assessee filed appeals against assessment orders. The Commissioner of Income Tax (Appeals) dismissed these appeals in limine on the grounds of non-prosecution by the assessee, allegedly without providing proper opportunity or addressing the merits.
Held
The Tribunal held that the CIT(A) erred in dismissing the appeals solely for non-prosecution, as Section 250(6) of the Income Tax Act mandates the CIT(A) to state points for determination and decide on merits, even in ex-parte proceedings. Citing judicial precedents, the Tribunal found that the CIT(A) could not shun the appeal for non-compliance without addressing the issues on merits. Therefore, the Tribunal set aside the CIT(A) orders and restored the matters for fresh adjudication, requiring the CIT(A) to provide a reasonable opportunity of hearing.
Key Issues
Whether the CIT(A) can dismiss appeals in limine for non-prosecution without considering the merits, and whether such dismissal violates principles of natural justice and statutory provisions.
Sections Cited
Section 250(6), Section 143(3), Section 147, Section 143(3A), Section 143(3B)
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Income Tax Appellate Tribunal, DELHI BENCH “E” DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI PRADIP KUMAR KEDIA
The captioned appeals arise from the order of the Commissioner of Income Tax (Appeals)-29, New Delhi in respective assessment orders passed by the Assessing Officer tabulated hereunder:
Sr. ITA/CO Nos. CIT(A) Order dated Assessment Order passed under Nos. Order date and Sections Assessment Year 1. CIT(A)-29, New Assessment Assessment Order under Delhi order dated order dated section 143(3) of the 05.09.2022 29.12.2019; Income Tax Act, 1961. A.Y. 2017-18 2 ITA No.2731/Del/2022 CIT(A)-29, New Assessment Assessment Order under Delhi order dated order dated section 147 of the Income 30.08.2022 26.12.2016; Tax Act, 1961. A.Y. 2011-12 3. ITA No.2732/Del/2022 CIT(A)-29, New Assessment Assessment Order under Delhi order dated order dated section 143(3) of the 30.08.2022 27.12.2016; Income Tax Act, 1961. A.Y. 2014-15 4. CIT(A)-29, New Assessment Assessment Order under Delhi order dated order dated section 143(3) of the 30.08.2022 24.12.2018; Income Tax Act, 1961. A.Y. 2016-17 5. ITA No.2734/Del/2022 CIT(A)-29, New Assessment Assessment Order under Delhi order dated order dated section 143(3) of the I.T.A. No.2730 to 2735/Del/2022 2
30.08.2022 29.12.2019; Income Tax Act, 1961. A.Y. 2017-18 6. CIT(A)-29, New Assessment Assessment Order under Delhi order dated order dated section 143(3) r.w. Section 30.08.2022 13.02.2021; 143(3A) & 143(3B) of the A.Y. 2018-19 Income Tax Act, 1961.
It is seen from the record that notice of hearing was duly served upon the assessee. As per the case records, none appeared from the assessee despite service of notice on several occasions. Accordingly, the matter was proceeded ex-parte.
As per the grounds of appeal, the assessee has taken various grounds seeking to assail the additions/disallowances of expenses made by the AO. As per the grounds of appeal, the assessee contends that the first appellate order has been passed without any opportunity to the assessee based on un-communicated notice to the assessee and therefore, passed in breach of principles of natural justice.
4. On perusal of the respective first appellate orders, we notice that the CIT(A) has dismissed the appeal in limine on the grounds of non-prosecution of appeal by the assessee before him. The CIT(A) has passed a cryptic order without any cogent discussion on merit.
5. We straightway refer to Section 250(6) of the Act which enjoins that the CIT(A) shall state the points for determination before it and the decision shall be rendered on such points along with reasons for the decision. Thus, it is incumbent upon the CIT(A) to deal with the grounds on merits even in ex parte order. In view of Section 250(6) of the Act, the CIT(A) has no power to dismiss an appeal on account of non-prosecution. This view is also taken by the Hon'ble Bombay High Court in case of CIT vs. Premkumar Arjundas Luthra HUF, (2017) 291 CTR 614 (Bom.). A bare glance of the order of the CIT(A) shows that CIT(A) has not addressed itself on various points placed for its determination at all and dismissed the appeal of assessee for default in non appearance. Needless to say, the CIT(A) plays role of both adjudicating authority as well as appellate authority. Thus, the CIT(A) could not have shunned the appeal for non- compliance without addressing the issue on merits.
6. In the totality of the circumstances, we consider it just and expedient to restore the matter back to the CIT(A) in the larger interest of justice with a view to enable the assessee to avail proper opportunity for disposal of appeal by the CIT(A) on various
I.T.A. No.2730 to 2735/Del/2022 3 points. The assessee is cautioned to extend full co-operation to the CIT(A) without any demur, failing which, the CIT(A) shall be at liberty to conclude the appellate proceedings in accordance with law. Hence, the order of the CIT(A) appealed against, is set aside and all the issues raised in the impugned appeal are restored back to the file of the CIT(A) for fresh adjudication in accordance with law after giving reasonable opportunity of hearing to the assessee.