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Income Tax Appellate Tribunal, S M C BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI A. MOHAN ALANKAMONY
आदेश /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Salem, dated 30.12.2014 and pertains to assessment year 2007-08.
Shri S. Sridhar, the Ld. counsel for the assessee, submitted that the CIT(Appeals) without going into the merit of the case dismissed the appeal of the assessee on the ground that no adjournment application was filed. According to the Ld. counsel, the power of the CIT(Appeals) is coterminous with that of the Assessing Officer and he has to examine the material available on record and is expected to decide the same on merit. The Ld. counsel further submitted that the CIT(Appeals) has no power to dismiss the appeal for non-prosecution. Therefore, the matter may be remitted back to the file of the CIT(Appeals) to dispose of the same on merit.
On the contrary, Sh. P. Radhakrishnan, the Ld. Departmental Representative, submitted that the CIT(Appeals) gave several opportunities. However, no one appeared on behalf of the assessee . Therefore, the CIT(Appeals) found that the assessee is not interested in prosecuting the appeal. Accordingly the same was dismissed.
We have considered the rival submissions on either side and perused the relevant material available on record. Under the scheme of Income-tax Act, the CIT(Appeals) is empowered to enhance the assessment by considering the source of income which was omitted to be considered by the Assessing Officer. The CIT(Appeals) also has coterminous power as that of the Assessing Officer. When the appeal came before the CIT(Appeals), it is for him to examine all the material facts and find out whether the Assessing Officer has correctly assessed the income of the assessee from all sources. If anything left out after issuing sufficient notice to the assessee, the CIT(Appeals) is bound to enhance the income of the assessee. Unfortunately, the CIT(Appeals) has not done that exercise. He simply rejected the claim of the assessee on the ground that the assessee is not interested in prosecuting the same. In view of the onerous task assigned to the CIT(Appeals) under the scheme of the Income-tax Act, this Tribunal is of the considered opinion that the CIT(Appeals) has no power to dismiss the appeal for non-prosecution. The CIT(Appeals), being the senior-most officer of the Department, can call for the material/records from the Assessing Officer and dispose of the appeal on merit without any assistance from the Assessing Officer.
Therefore, if the assessee fails to appear before the CIT(Appeals) that cannot be a reason to dismiss the appeal for non-prosecution.
In case the Assessing Officer has omitted to consider any source of income, this Tribunal is of the considered opinion that by rejecting the appeal of the assessee, the CIT(Appeals) is neglecting his power to enhance the assessment. Such an attitude cannot be entertained by this Tribunal. Therefore, the order of the lower authority is set aside and the entire issue raised by the assessee is remitted back to the file of the CIT(Appeals). The CIT(Appeals) shall reconsider the issue afresh raised in the grounds of appeal by the assessee. Thereafter he shall decide the same after giving reasonable opportunity to the assessee. It is made clear that if the assessee fails to appear before the CIT(Appeals) after issue of notice, it is for the CIT(Appeals) to dispose of the appeal on merit on the basis of the grounds raised by the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 1st January, 2016 at Chennai.