2021 (2) TMI 714 - AT - Income Tax

CIT(A) dismissing the appeal of the assessee on account of non appearance - HELD THAT - As per the provision of section 250(6) the order of the Ld. CIT(A) disposing of the appeal shall be in writing and shall state the points for determination the decision thereon and the reason for the decision. However in the instant case the Ld. CIT(A) without disposing the issue on merit has simply dismissed the appeal of the assessee due to non appearance which is not as per law. Restore the issue to the file of the Ld. CIT(A) with the direction to give one final opportunity to the assessee to substantiate its case and decide the issue as per fact and law. The assessee is also hereby directed to appear before the Ld. CIT(A) without seeking any adjournment under any pretext failing which the Ld. CIT(A) is at liberty to pass appropriate order as per law.

Summary

Issues: Appeal against ex-parte order of CIT(A) sustaining additions made by AO under sections 147/144 for assessment year 2010-11.

The appeal before the Appellate Tribunal ITAT DELHI was filed by the assessee against the ex-parte order dated 26th March, 2019 of the Ld. CIT(A)-32, New Delhi related to the assessment year 2010-11. The assessee challenged the order of the Ld. CIT(A) which sustained the addition made by the AO under sections 147/144 of the Income Tax Act. The AO had issued a notice under section 148 based on the assessee being identified as a non-filer for the assessment year 2010-11. The AO determined the total income of the assessee at ?5,99,609/- as there was no compliance from the assessee to the statutory notices. The Ld. CIT(A) dismissed the appeal filed by the assessee due to non-appearance, citing legal precedents. However, the Ld. CIT(A) did not decide the appeal on merit, which was found to be not in accordance with the law. The Tribunal, considering the facts and in the interest of justice, decided to restore the issue to the file of the Ld. CIT(A) with directions to give the assessee a final opportunity to substantiate its case and decide the issue based on facts and law. The assessee was directed to appear before the Ld. CIT(A) without seeking adjournment, failing which appropriate orders could be passed. The grounds raised by the assessee were allowed for statistical purposes.

In conclusion, the Tribunal set aside the ex-parte order of the Ld. CIT(A) and directed a fresh consideration of the issue, emphasizing the importance of due process and adherence to legal procedures in tax assessments.