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2024 (7) TMI 718 - AT - Income TaxDismissal of appeal by CIT(A) - Addition u/s 68 - unexplained cash credit - bogus LTCG earned by the assessee on sale of shares - HELD THAT - From the perusal of the order of the ld. CIT(A), we note that it is a cryptic order of six lines, dismissing the appeal for non-appearance of the assessee. Despite the objection raised by the Ld. Sr. DR, in the interest of justice and fair play, we find it appropriate to accept the submissions made by the Ld. Counsel for the assessee to restore the matter back to the file of ld. CIT(A) for denovo meritorious adjudication of the grounds of appeal taken by the assessee at the first appellate stage. Assessee is at liberty to furnish details and documents, if she so requires, to substantiate her claim. Section 250 of the Act provides for procedure to be adopted while disposing of the appeal by the Ld. CIT(A). Sub-section (4) of section 250 of the Act provides that the Ld. CIT(A) may, before disposing of any appeal, make such further inquiry as he thinks fit, or may direct the Assessing officer to make further inquiry and report the result of the same to the Commissioner (Appeals). Keeping in mind the provision of sections 250 of the Act, it is incumbent upon the Ld. CIT(A) to pass a speaking order on the merits of the case by examining, verifying and analyzing the material on record. Appeal of the assessee is allowed for statistical purposes.
Issues: Delay in filing appeal, Addition of unexplained cash credit as long term capital gain, Dismissal of appeal by CIT(A), Restoration of matter to CIT(A) for fresh adjudication
In the present case, the primary issue before the Appellate Tribunal ITAT Mumbai was the delay of 509 days in filing the appeal by the assessee. The Tribunal, after considering the reasons provided in the affidavit by the assessee, condoned the delay and proceeded to adjudicate on the matter. The next issue revolved around the addition of Rs. 61,45,653/- as unexplained cash credit under section 68 of the Income-tax Act, which the Assessing Officer treated as long term capital gain earned by the assessee on the sale of shares. The assessee had claimed this amount as exempt under section 10(38) of the Act. The Tribunal noted the grounds of appeal raised by the assessee challenging this addition and found it necessary to delve into the merits of the case. Regarding the dismissal of the appeal by the CIT(A) due to non-appearance of the assessee, the Tribunal observed that the order passed by the CIT(A) was brief and lacked detailed reasoning. The Tribunal, in the interest of justice, decided to restore the matter back to the file of the CIT(A) for a fresh adjudication on the grounds of appeal raised by the assessee. The Tribunal emphasized the importance of passing a speaking order as per the provisions of section 250 of the Act, requiring a thorough examination and analysis of the material on record by the CIT(A). In its decision to remit the matter back to the CIT(A), the Tribunal directed the assessee to actively participate in the proceedings before the CIT(A) and not seek adjournments without valid reasons. The Tribunal clarified that by restoring the case to the CIT(A), it was not expressing any opinion on the merits of the case, leaving the assessment procedure open for the CIT(A) to conduct a comprehensive review. Ultimately, the Tribunal allowed the appeal of the assessee for statistical purposes, indicating that the decision was made without delving into the substantive merits of the case.
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