What did the Tribunal hold?

The Tribunal held that the CIT(A) failed to dispose of the appeal on merits as required by law. Therefore, the assessee should be given one last chance to present its case.

The assessee's appeal was dismissed by the CIT(A) ex-parte due to non-appearance, without considering the merits. The Assessing Officer had applied a higher gross profit ratio than admitted by the assessee.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex-parte without considering the merits. Whether the assessee should be granted another opportunity to present its case.

S.Usha vs ITO | s.250(6) | ITAT Chennai 2017

Income Tax Appellate Tribunal, ‘A’ (SMC

Before: SHRI ABRAHAM P. GEORGE]

For Respondent: Shri. R. Clement Ramesh Kumar

आदेश / O R D E R In this appeal filed by the assessee, it grievance is that ld.

Commissioner of Income Tax (Appeals) had dismissed its appeal in limine without considering the merits.

I have considered the rival contentions and perused the orders of the authorities below. A perusal of the order of the ld.

ITA No. 3405/Mds/2016 :- 2 -:

Commissioner of Income Tax (Appeals) shows that the appeal of the assessee was disposed of ex-parte for want of appearance by the assessee or its ld. Authorised Representative. No doubt large number of opportunities were given by the ld. Commissioner of Income Tax (Appeals) to the assessee but still assessee did not enter appearance.

Ld. Assessing Officer had completed the assessment applying 6.03% as gross profit ratio on turnover of the assessee who was a dealer of Indian made foreign liquor against 4.44% admitted by the assessee.

Assessee had not produced the books of accounts. However, when assessee moved in appeal, ld. Commissioner of Income Tax (Appeals) did not deal with the merits of the appeal. Sec.250(6) of the Income Tax Act, 1961 (in short ‘’the Act’’) requires the ld. Commissioner of Income Tax (Appeals) to dispose of the appeal stating points for determination the decision thereon and the reasons for reaching the decision. Considering the circumstances, I am of the opinion that assessee can be given one last chance for representing its case before ld. Commissioner of Income Tax (Appeals). Order of the ld. Commissioner of Income Tax (Appeals) is set aside and the appeal is remitted back to his file for consideration afresh in accordance with law. Needless to say, assessee shall be given only one opportunity for ITA No. 3405/Mds/2016 :- 3 -: presenting his case, considering peculiar facts and circumstances.

In the result, the appeal of the assessee is allowed for 3. statistical purpose. Order pronounced on Wednesday, the 29th day of March, 2017, at Chennai

S.USHA,CHENNAI vs. ITO, PONDICHERRY

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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