M/S SHAKTI BUILDERS,UTTRAKHAND vs. ITO, RUDRAPUR

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ITA 780/DEL/2017Status: DisposedITAT Delhi25 May 2017AY 2012-132 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The ITAT held that the CIT(A) is required to pass a reasoned order, even if the assessee does not appear. Dismissing an appeal solely for non-prosecution without a reasoned decision is not sustainable in law. The matter was restored to the CIT(A) for re-decision on merits.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed for non-attendance. The assessee did not respond to notices or file written submissions. The assessee then appealed this dismissal to the ITAT.

What were the issues?

Whether an appeal can be dismissed solely for non-prosecution without a reasoned order by the CIT(A)? Whether the CIT(A) is obligated to provide reasons for a decision even in the absence of the assessee?

Which sections of the Income-tax Act were involved?

Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH - ‘SMC’ NEW DELHI

Before: SHRI BHAVNESH SAINI

For Respondent: Ms. Badobani, Sr. DR
Hearing: 25/05/2017Pronounced: 25/05/2017

This appeal by the assessee has been directed against the order of Ld.

CIT(A) – Haldwani dated 24.11.2016 for assessment year 2012-13.

2.

Ld. CIT(A) noted in the impugned order that the assessee did not respond to the notice nor filed written submissions. Therefore, assessee was not interested in prosecuting the appeal. Therefore appeal of assessee was dismissed for nonattendance.

3.

After hearing Ld. DR, I am of the view, matter requires reconsideration at the level of Ld. CIT(A). According to Section 250 (6) of I.T. Act, Ld. CIT(A) is required to pass reasoned order give reasons for the decision in the appellate order. Therefore even if assessee did not appear before him, Ld. CIT(A) is under obligation to pass the order giving reasons for the same. If Ld. CIT(A) dismissed the appeal of assessee for non prosecution only such order cannot be sustained in law. The matter therefore requires reconsideration. I, accordingly ,set aside the impugned order and restore the appeal of the assessee to his file with direction to re-decide appeal of assessee on merits giving reasons for decision in the appellate order by giving reasonable sufficient opportunity of being heard to the assessee.

4.

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

Pronounced in the Open Court.

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