What did the Tribunal hold?

The Tribunal held that the CIT(A) did not dispose of the appeal in accordance with Section 250(6) of the Income Tax Act. The matter was remitted back to the CIT(A) for fresh disposal, granting the assessee one last chance to appear and present its case.

The assessee's appeal before the CIT(A) was dismissed for default in appearance, despite the assessee claiming to have a strong case on merits. The assessee argued that the CIT(A) was obligated to decide the case on merit.

What were the issues?

Whether the CIT(A) can dismiss an appeal for default without deciding on merits, and if the procedure under Section 250(6) was followed.

T.John Rajasekar vs ACIT | ITAT Chennai 2016

Income Tax Appellate Tribunal, ‘ C’ BENCH : CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI ABRAHAM P. GEORGE]

For Respondent: Shri. Sasikumar, IRS, JCIT

आदेश / O R D E R

PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER

In this appeal filed by the assessee, its grievance is that ld. Commissioner of Income Tax (Appeals) did not decide the case on merit but had dismissed for default in appearance.

ITA No. 396/Mds/2015 :- 2 -:

Ld. Counsel for the assessee submitted that assessee could not enter into appearance before ld. Commissioner of Income Tax (Appeals) when the appeal was posted for hearing on various dates.

As per ld. Authorised Representative assessee had a good case on merits, since the addition due to disallowance of commission and addition due to unexplained deposits in Axis bank account, could all be explained by assessee with evidence. As per ld. Authorised Representative, ld. Commissioner of Income Tax (Appeals) was obliged under law to dispose the case on merit and ought not have dismissed for default in entering appearance.

Per contra, the ld. Authorised Representative strongly 3.

supported the orders of the authorities below.

We have considered the rival contentions and perused the 4. orders of the authorities below. Sub (6) to Section 250 is reproduced hereunder:-

‘’The order of the Commissioner of Income Tax (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision’’. It is clear from the above section that ld. Commissioner of Income Tax (Appeals) has to dispose the appeal stating the points for determination, the decision given by him and reason for reaching such decision. In the case before us, no doubt the appeal was posted

ITA No. 396/Mds/2015 :- 3 -: for hearing nine times but assessee had not entered appearance. However, ld. Commissioner of Income Tax (Appeals) did not proceed in accordance of amendment of Sec. 250(6) of the Act reproduced by us above. We are of the opinion that considering the facts and circumstances of the case, the matter has to be remitted back to the ld. Commissioner of Income Tax (Appeals) for disposal in accordance with law. The assessee shall be given one last chance for entering appearance and supporting its case with evidence. We therefore, set aside the order of the ld. Commissioner of Income Tax (Appeals) and remit the issue back to the file for consideration afresh in accordance with law.

T.JOHN RAJASEKAR,CHENNAI vs. ACIT, MADURAI

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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