2006 (8) TMI 258 - AT - Income Tax

Summary

Issues:
Appeal against order dismissing for want of appearance by assessee - Legality of dismissing appeal for non-appearance by CIT(A) - Power of CIT(A) to treat appeal as unadmitted and dismiss for want of appearance.

Analysis:

1. Appeal against order dismissing for want of appearance by assessee:
The appeal was directed against the order passed by the CIT(A) dismissing the appeal for want of appearance by the assessee. The Tribunal noted that the assessee's chartered accountant, as per an affidavit, was engaged for arguing the case but could not attend the proceedings due to shifting. The counsel of the assessee admitted fault for non-appearance before the CIT(A). The Tribunal emphasized that even in the absence of representation from the assessee, the CIT(A) is duty-bound to decide the appeal on merits ex parte. Therefore, the Tribunal found that the CIT(A) erred in adopting a course not legally open to him by dismissing the appeal solely for want of appearance.

2. Legality of dismissing appeal for non-appearance by CIT(A):
The Tribunal highlighted that the CIT(A) does not have the power to treat the appeal as unadmitted and dismiss it for want of appearance, unlike the Tribunal. The Tribunal held that the CIT(A) must decide the appeal on merits even in the absence of representation from the assessee. In this case, since a reasonable cause for non-appearance was established, the Tribunal deemed it just and fair to set aside the impugned order and restore the matter to the file of the CIT(A) for a fresh decision as per law, ensuring a reasonable opportunity for the assessee to be heard.

3. Power of CIT(A) to treat appeal as unadmitted and dismiss for want of appearance:
The Tribunal clarified that the CIT(A) must not dismiss an appeal solely for want of appearance by the assessee. The Tribunal emphasized that the CIT(A) is obligated to decide the appeal on merits, even if there is no representation from the assessee. Therefore, the Tribunal ordered the restoration of the matter to the CIT(A) for a fresh decision, allowing the assessee a reasonable opportunity to present their case.

In conclusion, the Tribunal allowed the appeal for statistical purposes, setting aside the order of the CIT(A) that dismissed the appeal for want of appearance and directing a fresh decision by the CIT(A) after affording the assessee a reasonable opportunity to be heard.