KUMAR JANARDHAN NAIR,THRISSUR vs. ASSESSING OFFICER 2(3), THRISSUR

Brief facts of the case are that the assessee had purchased 2 pension policies from Bajaj Life Insurance Company on 16.04.2010 for Rs. 7,50,000/- and Rs. 40,00,000/-. He closed these policies before maturity and the premature value was received during the financial year 2013-14 relevant to AY 2014-15. The Income Tax

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal for non prosecution.

At the outset se find that the CIT(A) has dismissed the appeal in limine for non prosecution by the assessee without dealing with the issues in the appeal on merits. It is the settled position of law that the CIT(A), even while disposing of the appeal exparte, is duty bound to dispose of the appeal on merits, even in the absence of the assessee. Reliance in this regard can be placed on the decision of the Hon'ble Bombay High Court in the case of PCIT vs. Premkumar Arjundas Luthra 279 CTR 614. Therefore, in the light of the above legal position we are of the considered view that the matter is required to be remanded to the file of the CIT(A) with a direction to dispose of the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee.

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