9911796707
TMI Blog2024 (7) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... account of non-prosecution of the same by the assessee. In fact, a perusal of Sec.251(1)(a) and (b), as well as the Explanation to Sec.251(2) of the Act reveals that the CIT(Appeals) remains under a statutory obligation to apply his mind to all the issues which arises from the impugned order before him. As per mandate of law the CIT(Appeals) is not vested with any power to summarily dismiss the appeal for non-prosecution. Thus unable to subscribe to the dismissal of the appeal by the CIT(Appeals) for non-prosecution, therefore, set-aside his order with a direction to dispose off the same on merits - Appeal filed by the assessee is allowed for statistical purposes. - Shri Ravish Sood, Judicial Member For the Assessee : Shri Praveen Goyal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redited an amount of Rs. 5,00,000/- (in cash) in his capital account on 01.04.2013. On being queried, it was the claim of the assessee that the aforementioned amount was received by him as a gift from his father, viz. Shri Haricharan Agarwal on 01.04.2013. The assessee in order to fortify his aforesaid claim had placed on record the copy of capital account of Shri Haricharan Agarwal for F.Y.2012-13 and F.Y. 2013-14 a/w. balance sheet for the said respective years. Also, confirmation of Shri Haricharan Agrawal was filed before the A.O wherein he had confirmed of having given a cash gift of Rs. 5 lacs to the assessee. However, the A.O did not find favour with the documentary evidence that was filed by the assessee before him. The A.O observed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der: 5. Before adjudicating on the grounds of appeal of the case, it is pertinent to mention here that the records of the proceedings of this office as narrated below shows that more than due opportunities were given to the appellant and rules of natural justice were duly adhered to. A number of opportunities were given to the appellant company. Details of notices sent are as follows:- S. No. Date of issue of notice/letter Date of fixing the case for hearing Remarks 1. 30/01/2021 15/02/2021 Notice was sent to appellant through ITBA Portal No reply has been received from the appellant till date. 2. 08/02/2024 05/03/2024 Notice was sent to appellant through ITBA Portal No reply has been received from the appellant till date. 6. As is evident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eated as dismissed. 5. The assessee being aggrieved with the order of the CIT(Appeals) has carried the matter in appeal. 6. I have heard the Ld. Authorized Representatives of both the parties, perused the orders of the lower authorities and material available on record as well as considered the judicial pronouncements that have been pressed into service by the Ld. AR to drive home his contentions. 7. Shri Praveen Goyal, Ld. Authorized Representative (for short 'AR') for the assessee at the threshold submitted that both the lower authorities had erred in recharacterizing the cash gift of Rs. 5 lacs as an unexplained cash credit u/s. 68 of the Act. Elaborating on his contention, the Ld. AR submitted that though the assessee in order t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate in the proceedings before the CIT(Appeals), therefore, the latter was constrained to dismiss his appeal for want of prosecution. Although I concur with the action of the CIT(Appeals), who had in absence of any compliance by the assessee proceeded with the matter, but at the same time, am unable to subscribe to the manner in which he had disposed off the appeal. As observed hereinabove, the CIT(Appeals) had disposed off the appeal for non-prosecution and had failed to apply his mind to the issue which did arise from the impugned order and was assailed by the assessee before him. In my considered view, once an appeal is preferred before the CIT(Appeals), it becomes obligatory on his part to dispose off the same on merit and it is not open ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that while considering the appeal, the CIT(A) would be entitled to consider and decide any issue arising in the proceedings before him in appeal filed for its consideration, even if the issue is not raised by the appellant in its appeal before the CIT(A). Thus once an assessee files an appeal under s. 246A of the Act, it is not open to him as of right to withdraw or not press the appeal. In fact the CIT(A) is obliged to dispose of the appeal on merits. In fact w.e.f. 1st June, 2001 the power of the CIT(A) to set aside the order of the AO and restore it to the AO for passing a fresh order stands withdrawn. Therefore, it would be noticed that the powers of the CIT(A) are co-terminus with that of the AO i.e. he can do all that A.O could do. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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