DAWAR INFRABUILD PVT LTD,AGRA vs. DY COMM OF INCOME TAX, AGRA

Brief facts state that the assessee e-filed its return of income on 29.09.2015, declaring total income of Rs.3,62,66,490/-. Return was processed u/s. 143(1) of the Act. Case was selected for limited scrutiny under CASS. Statutory notices u/s. 143(2) and 142(1) of the Act were issued and served upon the assessee. Assessee submitted his response through Chartered Accountant. After considering the assessee’s response and submissions, learned Assessing Officer added total rental income of Rs.5,73,74,325/- received by assessee u/s. 56 of the Act in the income of the assessee.

Aggrieved, assessee filed an appeal before learned CIT(Appeals), who dismissed assessee’s appeal in default of assessee.

Assessee preferred this second appeal on the ground, in addition to others on merits, that the ld. CIT(Appeals) has erred in dismissing the appeal ex parte.

Perused the records and heard learned representative for assessee and learned Sr. DR for revenue.

At the very outset, we notice that ld. CIT(Appeals) issued notices dated 17.12.2019, 24.12.2020, 17.12.2020, 06.07.2023, 26.02.2025 and 28.05.2025, which remained un-responded except on one occasion when the assessee sought adjournment. Such an irresponsive conduct of the assessee cannot be appreciated. However, we note that learned CIT(Appeals) has tried to pass the impugned order on merits, but not in true spirit of section 250(6) of the Act, whereas the ld. CIT(Appeals) was 2 | P a g e expected to state the points for determination, decision thereon and the reasons for the decision as provided u/s. 250(6) of the Act. We, therefore, deem it just and appropriate to remit the matter back to the file of learned CIT(A) for adjudication afresh on merits after affording opportunity of hearing to the assessee. The ld. CIT(Appeals) is directed to pass speaking and reasoned order. We direct the assessee to be cooperative in attending the hearings and making submissions before the learned CIT(A) for the expeditious and effective disposal. Needless to say, that learned CIT(A) shall ensure the observance of the principles of natural justice. The appeal is, thus, liable to be allowed for statistical purposes.

In the result, assessee’s appeal is allowed for statistical purposes.