24 June 2024


Judgments

Income Tax Appellate Tribunal

Vijay Enterprises, Pratapgarh vs. Assistant Commissioner of Income Tax

MANU/IW/0031/2021

22.04.2021

Direct Taxation

CIT(A) is obligated to state points for determination in appeal before him, the decision thereon and the reasons for determination

The assessment in the case of the assessee was framed by Assessing Officer (AO) under Section 143(3) read with Section 144 of the Income Tax Act, 1961 (IT Act), wherein income of the assessee was assessed by AO to the tune of Rs. 68,16,060 , as against returned income of the assessee of Rs. 12,15,680. Aggrieved, by additions made by the AO , the assessee challenged the additions as were made by the AO by filing first appeal with learned Commissioner of Income Tax [CIT(A)], who was pleased to dismiss the appeal of the assessee , vide appellate order passed by learned CIT(A).

The assessment proceedings were initiated by Revenue against assessee by invoking provisions of Section 143(2) read with Section 143(3) of the IT Act , which culminated into an assessment order passed by AO under Section 143(3) read with Section 144 of the 1961 Act , wherein income of the assessee was assessed by AO to the tune of Rs. 68,16,060 as against returned income of the assessee of Rs. 12,15,680. The assessee filed first appeal before learned CIT(A). The learned CIT(A) gave several opportunities of hearing to the assessee as are stated/extracted in the appellate order passed by learned CIT(A), but the assessee sought adjournment on two occasions while on other occasions when the appeal was fixed before CIT(A), the assessee did not appear before CIT(A), who was then pleased to dismiss the appeal of the assessee in the absence of the assessee, in limine without discussing the issues on merits which were raised by assessee in as many as 12 grounds of appeal in the memo of appeal filed with CIT(A) and the assessment order passed by the AO was upheld by learned CIT(A) wherein appeal filed by the assessee stood dismissed by CIT(A).

Reference is made to provisions of Section 250(6) of the 1961 Act, wherein learned CIT(A) is obligated to state points for determination in appeal before him, the decision thereon and the reasons for determination. On the part of the assessee, there was a consistent failure to appear before the learned CIT(A) when the appeal was called for hearing before learned CIT(A), which led learned CIT(A) to pass an ex-parte appellate order. Thus, assessee is equally to be blamed for its woes as the assessee did not appear before the learned CIT(A).

The interest of justice will be served, if the appellate order passed by CIT(A) be set aside and the matter is set aside/restored back to the file of learned CIT(A) for fresh adjudication of all the twelve grounds of appeal raised by assessee in its appeal filed with learned CIT(A). The learned CIT(A) shall give proper and adequate opportunity of being heard to the assessee in accordance with principles of natural justice in the set aside remand proceedings for denovo adjudication of the appeal of the assessee filed before learned CIT(A). The appeal filed by the assessee is allowed for statistical purposes.

Tags : Assessment Additions Legality

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