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Facts
The assessee's appeal was dismissed by the Ld. CIT(A) ex-parte without deciding the issue on merit, despite the Ld. CIT(A) issuing several notices which were not complied with by the assessee. The assessee argued that the appeal should be set aside and decided afresh.
Held
The Tribunal found that the Ld. CIT(A) is required to pass a reasoned and speaking order on the grounds raised by the assessee, even in the absence of submissions. Therefore, the Tribunal set aside the order of the Ld. CIT(A) and restored the matter to him for a fresh decision.
Key Issues
Whether the Ld. CIT(A) erred in dismissing the appeal ex-parte without deciding the merits, and if the matter should be remanded for a reasoned order.
Sections Cited
147, 148, 144B, 250(6)
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Income Tax Appellate Tribunal, MUMBAI BENCH “K (SMC
Before: SHRI OM PRAKASH KANT & MS. KAVITHA RAJAGOPAL
This appeal has been preferred by the assessee against order dated 02.07.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2017-18, raising following grounds:
On the facts and in the circumstances of the case and in law, the proceedings initiated us 147 of the act is invalid and bad in law.
On the facts and in the circumstances of the case and in law, the 2. On the facts and in the circumstances of the case and in law, the 2. On the facts and in the circumstances of the case and in law, the notice issued us 148 of the act is invalid and bad in law. notice issued us 148 of the act is invalid and bad in law.
On the facts and 3. On the facts and in the circumstances of the case and in law, the in the circumstances of the case and in law, the assessment order passed u/s 147 r.w.S. 144B of the act is invalid assessment order passed u/s 147 r.w.S. 144B of the act is invalid assessment order passed u/s 147 r.w.S. 144B of the act is invalid and bad in law. and bad in law.
4. On the facts and in the circumstances of the case and in law, the 4. On the facts and in the circumstances of the case and in law, the 4. On the facts and in the circumstances of the case and in law, the learned C.I.T. (A) erred in dismissing the appeal. learned C.I.T. (A) erred in dismissing the appeal. 5. On the facts and in the circumstances of the case and in law, the n the facts and in the circumstances of the case and in law, the n the facts and in the circumstances of the case and in law, the learned C.I.T. (A) erred in dismissing the appeal and that too learned C.I.T. (A) erred in dismissing the appeal and that too learned C.I.T. (A) erred in dismissing the appeal and that too without even appreciating the facts and circumstances of the case without even appreciating the facts and circumstances of the case without even appreciating the facts and circumstances of the case fully and properly. fully and properly. 6. On the facts and in the circumstances o 6. On the facts and in the circumstances of the case and in law, the f the case and in law, the learned C.I.T. (A) erred in dismissing the appeal and that with out learned C.I.T. (A) erred in dismissing the appeal and that with out learned C.I.T. (A) erred in dismissing the appeal and that with out dealing with the merits of the case. dealing with the merits of the case. 2. At the outset, the Ld. counsel for the assessee submitted that At the outset, the Ld. counsel for the assessee submitted that At the outset, the Ld. counsel for the assessee submitted that this appeal has been decided by the Ld. CIT(A) this appeal has been decided by the Ld. CIT(A) ex ex-parte qua the assessee without deciding the issue on merit and therefore, this assessee without deciding the issue on merit and therefore, this assessee without deciding the issue on merit and therefore, this appeal might be set aside for deciding afresh. appeal might be set aside for deciding afresh.
3. We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the relevant material on record. We find that the Ld. CIT(A) issued relevant material on record. We find that the Ld. CIT(A) issued relevant material on record. We find that the Ld. CIT(A) issued various notices for hearing however, same were not complied by the hearing however, same were not complied by the hearing however, same were not complied by the assessee. The Ld. CIT(A) thereafter dismissed the appeal in default assessee. The Ld. CIT(A) thereafter dismissed the appeal in default assessee. The Ld. CIT(A) thereafter dismissed the appeal in default without considering the issue on merit. In our opinion, under the without considering the issue on merit. In our opinion, under the without considering the issue on merit. In our opinion, under the provisions of section 250(6) of the Act, the Ld. CIT(A) is required to provisions of section 250(6) of the Act, the Ld. CIT(A) is requ provisions of section 250(6) of the Act, the Ld. CIT(A) is requ pass a reasoned and speaking order on the grounds raised by the pass a reasoned and speaking order on the grounds raised by the pass a reasoned and speaking order on the grounds raised by the assessee even in absence of any submission on behalf of the assessee even in absence of any submission on behalf of assessee even in absence of any submission on behalf of assessee. Therefore, we feel it appropriate to set aside the order of assessee. Therefore, we feel it appropriate to set aside the orde assessee. Therefore, we feel it appropriate to set aside the orde the Ld. CIT(A) and restore the Ld. CIT(A) and restore the matter back to him for the matter back to him for deciding afresh and pass a reasoned and speaking order on the grounds a reasoned and speaking order on the grounds a reasoned and speaking order on the grounds raised by the assessee. The grounds of appeal of the assessee are raised by the assessee. The grounds of appeal of the assessee are raised by the assessee. The grounds of appeal of the assessee are accordingly allowed for statistical purposes. accordingly allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes. urposes.
Order pronounced in the open Court on nounced in the open Court on 22/10/2024. /10/2024.