BHAGATRAM RAWALDAS MOTWANI,NAGPUR vs. INCOME TAX OFFICER (ITO) CIRCLE-4, NAGPUR

Date of Hearing – 20/06/2024 Date of Order – 20/06/2024

O R D E R PER K.M. ROY, A.M.

The present appeal has been preferred by the Assessee challenging the impugned order dated 31/10/2023, passed under section 250 of the Income Tax Act, 1961 ("the Act") by the learned CIT (A), Nagpur, [“learned CIT (A)”], for the assessment year 2017-18.

“1] The learned CIT(A) erred in dismissing the appeal without adjudicating merits of additions made by A.O. 2] Order passed by learned CIT(A) is without providing reasonable opportunity of being heard and is in violation of principles of natural justice. Addition as made ought to have been deleted. 3] Order passed by learned CIT(A) dismissing the appeal of assessee is illegal, invalid and bad in law. 4] Income determined at Rs.95,31,263/- is unjustified, unwarranted and excessive. 5] The addition made by A.O. at Rs.32,39,983/- on account of commission is unjustified, unwarranted and excessive. 6] The learned A.O. erred in concluding assessee has unrecorded turnover of Rs.6,47,99,677/- and income there upon at Rs.32,39,983/- is required to be added in assessment framed. 7] The assessee denies liability to pay interest under section 234A, 234B and 234C of I.T. Act, 1961. Without prejudice, levy of interest under Section 234A, 234B and 234C of I.T. Act, 1961 is unjustified, unwarranted and excessive. 8] Any other ground that shall be prayed at the time of hearing.”

3.3 Hon’ble CIT(A) dismissed grounds of appeal for non- prosecution of assessee without adjudicating the issue on merits. Order passed is liable to be set aside. 3.4 Reliance on: i) ITAT order in in case of Shriniwasa Construction vide order dated 30/04/2024. ii) ITAT order in ITA No. 214 to 219/Nag/2022 in case of Shri Shirkari Builders & Developers vide order dated 21/12/2023.

4. We have heard the rival arguments made by both the sides and perused the material available on record. It is an admitted fact that despite a number of opportunities granted by the learned CIT(A), the assessee did not make any submission for which the learned CIT(A) dismissed the appeal for want of prosecution. At the same time, it is also seen that the learned CIT(A) has not decided the appeal on merit. As per the provisions of section 250(6) of the Act, 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 reason for the decision. However, in the instant case, the learned CIT(A) has dismissed the appeal for want of prosecution and has not decided the appeal on merit which he was required to do. Considering the totality of the facts of the case and in the interest of justice, we deem it fit and proper to restore the issue to the file of the learned CIT(A) with a direction to grant one last opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law by passing a speaking order. The assessee is also hereby directed to make his submission on the appointed date without seeking any adjournment under any pretext failing which the learned CIT(A) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.