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Facts
The assessee's appeal was dismissed ex-parte by the CIT(A) for non-prosecution. The CIT(A) has an obligation to decide the appeal on merits, not dismiss it for non-prosecution.
Held
The CIT(A) cannot dismiss an appeal for non-prosecution and is obligated to decide the appeal on merits. The impugned order is set aside.
Key Issues
Whether the CIT(A) can dismiss an appeal for non-prosecution? Whether the appeal should be decided on merits?
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Mumbai “SMC” Bench, Mumbai.
Before: Shri Vikas Awasthy (JM) & Shri Amarjit Singh (AM)
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 9.10.2023, for Assessment Year 2017-18.
A perusal of appeal file shows that the CIT(A) in an ex-parte proceedings has dismissed the appeal of the assessee in limine for non- prosecution. It is no more res integra that the CIT(A) cannot dismiss the appeal for non-prosecution. The CIT(A) is under obligation to decide the appeal on merits. Considering the settled legal position, the impugned order is set aside and the appeal is restored to CIT(A) for fresh adjudication on merits, in accordance with law after affording reasonable opportunity of hearing/making submissions to the assessee.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on Wednesday the 8th Day of May, 2024.