LOHA ISPAT LTD,RAIGAD vs. DCCC 43, MUMBAI

Inspite of service of notice, none appeared on behalf of the assessee at the time of hearing, therefore, we proceed to decide the appeal ex parte qua the assessee after hearing the Ld. DR on merit in terms of Rule 24 of the Appellate Tribunal Rules, 1963.

In this appeal, the first and the foremost plea of the assessee is that the CIT(A) erred in disposing the appeal of the assessee ex parte without deciding on merits of the grounds raised before him.

In brief, the relevant facts are that assessee is a company whose total income was assessed at Rs.1,34,04,746/- in an order passed u/s 143(3) r.w.s. 147 of the Act dated 27.08.2009. Subsequently, a search action was carried out on 23.02.2012 consequent to which an assessment was finalised u/s 143(3) r.w.s. 147 of the Act dated 30.03.2013, whereby the income was assessed at Rs.3,36,66,470/- after making various additions and disallowances. The assessee challenged the various additions made in the assessment order passed u/s 143(3) r.w.s. 147 of the Act before the CIT(A), who has dismissed the appeal without going into the merits of the case as according to him assessee was not interested in pursuing the appeal because nobody appeared on behalf of the assessee inspite of issuance of notice of hearing.

At the time of hearing, it was pointed out to the Ld. DR that the CIT(A) has dismissed the appeal without deciding on merits the grounds raised before him, which is unsustainable. It was therefore pointed out that the matter deserves to be revisited by the CIT(A) as per law.

Having considered the impugned order and the submissions of the Ld. DR, we find that in the present case the appeal of the assessee has been dismissed by the Commissioner (Appeals) without going into the merits of the issues raised before him. Sec. 250(6) of the Act prescribes that the order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such a decision. Ostensibly, the CIT(A) is obligated to dispose of the appeal in the manner prescribed in Sec. 250(6) of the Act, which requires that the issues raised before him by way of the Grounds of appeal are addressed, decision rendered thereon by stating the reasons for such a decision. The said approach is conspicuous by its absence in the impugned order of the CIT(A), wherein the appeal has been dismissed in limine without adverting to the merits of the Grounds of appeal raised before him. Therefore, on this count itself, the impugned order of CIT(A) is unsustainable. Be that as it may, we deem it fit and proper to set-aside the impugned order of CIT(A) and remand the appeal back to his file for adjudication afresh as per law after allowing the assessee a reasonable opportunity of being heard.

In the result, appeal of the assessee is allowed, as above.