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Facts
The assessee's appeal against an Assessment Order for AY 2013-14 was dismissed ex-parte by the National Faceless Appeal Centre (NFAC)/CIT(A) due to non-representation/non-prosecution without deciding the issues on merit. The assessee subsequently appealed this dismissal to the Income Tax Appellate Tribunal (ITAT).
Held
The ITAT held that Section 251 of the Income Tax Act does not empower the CIT(A) to dismiss an appeal for non-prosecution. Consequently, the tribunal remitted the case back to the CIT(A) with directions to pass a speaking order after affording the assessee an opportunity of being heard on merits.
Key Issues
Whether the CIT(A) can dismiss an appeal for non-representation/non-prosecution under Section 251 of the Income Tax Act.
Sections Cited
Section 251 of the Income Tax Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘H’: NEW DELHI
Before: SHRI SHAMIM YAHYA & SHRI ANUBHAV SHARMA
ORDER PER SHAMIM YAHYA, A.M.
This appeal by the assessee is directed against the order of National Faceless Appeal Centre (NFAC), Delhi dated 31.05.2023 and pertaining to Assessment Year 2013-14.
Although, the assessee has raised various grounds. The Ld. Counsel for the assessee at the beginning pressed for the ground no. 1 which reads as under:
“1. That having regard to facts and circumstances of the case, Ltd. CIT(A), NFAC has erred in Law by passing ex-parte order dismissing the appeal for non- representation/non-prosecution without deciding the issues on merit.”
ITA No.- 2118/Del/2023 Xavient Software Solutions India P. Ltd. 3. In this case, pursuant to Assessment Order passed by the AO dated 30.12.2016, the assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) noted that several dates have been fixed but the assessee has not appeared. Hence, the ld. CIT(A) dismissed the appeal for non-prosecution .
Against this order, the assessee has filed appeal before us.
We have heard both the parties and perused the material on record. We find that Section 251 of the Income Tax Act dealing with the powers of ld. CIT(A) does not provide for dismissal of the appeal for non-prosecution. Hence, we remit the issue to the file of the ld. CIT(A). The ld. CIT(A) shall pass speaking order after giving an opportunity to the assessee .
In the result, the appeal of the assessee is allowed for statistical purpose.
Order Pronounced in the Open Court on 22/01/2024.
Sd/- Sd/-
(ANUBHAV SHARMA) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 22/01/2024 (Pooja) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT
ITA No.- 2118/Del/2023 Xavient Software Solutions India P. Ltd. ASSISTANT REGISTRAR ITAT NEW DELHI
17.01.24 Date of dictation
Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member
Date on which the approved draft comes to the Sr. PS/PS
Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT
Date on which the file goes to the Bench Clerk
Date on which the file goes to the Head Clerk