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Income Tax Appellate Tribunal, S M C BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN
आदेश /O R D E R
The appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-4, Chennai, dated 25.03.2015 in ITA No.43/2013-14. The appeal arises out of the assessment completed under Section 143(3) of the Income-tax Act, 1961 (in short 'the Act').
The assessee has raised six grounds against order of CIT(Appeals) erred in passing an ex parte and non-speaking order.
The brief facts of the case are that the assessee is an individual, filed income-tax return for the assessment year 2006-07 on 15.09.2006 admitting total income of `2,03,505/- and the return was processed under Section 143(1) of the Act. The case was selected for scrutiny under CASS and was transferred from ACIT, Circle XV through Notification No.1566/JCIT/R.XV/08-09 dt.
23.06.2008. Subsequently, notice was issued under Section 143(2) of the Act and the authorized representative appeared in the assessment proceedings on various dates and complied with the submissions called for from time to time. The Ld. A.O., after considering the explanations and clarifications, made additions of recruitment, training and incentive expenditures, bad debts written off confirmation and bank deposits and assessed income of `12,19,404/- and determined tax liability of `4,50,522/-.
Aggrieved by the order of the A.O., the assessee filed appeal before the CIT(Appeals) explaining the facts and raised various grounds in respect of disallowances and explained the source and supported with evidence. The Ld. CIT(Appeals) relied on the decisions of the Hon'ble Supreme Court and High Courts and co- ordinate Bench of the Tribunal and has drawn a unilateral conclusion that the assessee is not interested in pursuing the case and dismissed for non-prosecution of the appeal without considering the information in the grounds of appeal.
5. Aggrieved by the ex parte order of the CIT(Appeals), the assessee has filed appeal before the Tribunal on the grounds of principle of natural justice and non-application of procedures by the CIT(Appeals) in passing ex parte and non-speaking order and the Ld. AR relied on various case laws of High Courts and Supreme Court and requested the Tribunal to adjudicate the appeal on merits.
Meanwhile, the Income Tax Department was pressurizing for payment of demand raised in assessment proceedings and assessee filed a stay petition before the Tribunal on 16th July, 2015. This Tribunal heard the Ld.counsel for the assessee and the Ld. D.R. for stay of recovery of outstanding amount. The matter was not prosecuted before the CIT(Appeals) and the case is not adjudicated on merits. The Tribunal passed order in S.P. No. 382/Mds/2015 dt. 24.07.2015 granting stay for a period of six months from the date of order or till the disposal of the appeal, whichever is earlier. While the stay petition is in force, the CIT(Appeals) suo moto has decided the case on merits and adjudicated the matter and allowed the appeal.
The Tribunal, after considering the rival submissions of the Ld. counsels and also information placed on record, is of the opinion that the CIT(Appeals) in dated 18.08.2015 has passed the order on merits and allowed the grounds of the appeal. The fact remains that the appeal filed by the assessee is pending before this Tribunal and during the pendency of the appeal, the recovery of the outstanding amount was stayed.
Therefore, it is not known how the CIT(Appeals) passed the order on 18.08.2015, when nothing was pending before him. However, without going to further reason, this Tribunal is of the considered opinion that the matter needs to be considered afresh by the CIT(Appeals). Accordingly, the order of the CIT(Appeals) is set aside and the issues raised by the assessee are remitted back to the file of the CIT(Appeals). The CIT(Appeals) shall examine all the issues raised by the assessee and decide the same in accordance with law after giving reasonable opportunity to the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 16th October, 2015 at Chennai.