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Issues involved: Appeal against order of CIT(A) dismissing appeal for non-prosecution without considering facts and grounds raised by assessee. Violation of provisions of section 250(6) regarding speaking order.
Issue 1 - Appeal Dismissal for Non-prosecution: The appeal was filed against the order of the CIT(A) for assessment year 1995-96, where the CIT(A) dismissed the appeal due to non-prosecution by the assessee. The CIT(A) observed that the assessee failed to appear on various hearing dates and when the appeal was fixed, an adjournment application was moved. The CIT(A) relied on decisions of the Delhi Bench of Tribunal and M.P. High Court in support of the dismissal for non-prosecution. Issue 2 - Violation of Section 250(6): The counsel for the assessee argued that the order of dismissal for non-prosecution was erroneous and the CIT(A) should have passed a speaking order discussing the merits of the claims raised by the assessee. It was pointed out that appeals for earlier assessment years were pending, and the CIT(A) did not consider them before dismissing the current appeal. The Tribunal found the CIT(A)'s order to be in violation of section 250(6) which mandates that appellate orders state the points arising, decisions made, and reasons for such decisions. The Tribunal further emphasized that a speaking order is essential for parties to understand the precise points decided in their favor or against them, as it embodies the principles of natural justice. The Tribunal also clarified that the decisions cited by the CIT(A) were not applicable in this case, as the provisions of section 250(6) are distinct from those under section 254. Therefore, the Tribunal set aside the CIT(A)'s order and directed a fresh disposal of the appeal, ensuring proper opportunity in accordance with the law. For statistical purposes, the appeal was treated as allowed.
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