Saw Chhaganlal Arjanbhai Thacker Medical And Education Trust vs. The DCIT/ACIT - (Income Tax Appellate Tribunal) (20 Oct 2022)

CIT(A) has no power to dismiss an appeal on account of non-prosecution, without discussing the merits of the case

MANU/IR/0183/2022

Direct Taxation

The brief facts of the case are that the return of income was filed by the assessee declaring total income of Nil in the status of AOP (Trust), after claiming deduction under Section 11 of the Income Tax Act, 1961. Intimation under Section 143 (1) of the Act computing income of 2,73,857 by way of not granting deduction claimed under Section 11 of the Act. By way of the aforesaid intimation, the DCIT made adjustments by not giving deduction of 4,01,053 claimed by the assessee under Section 11 of the Act. The assessee filed appeal against the additions, which were dismissed by Learned CIT(Appeals) The assessee is in appeal against the order passed by learned CIT(Appeals).

In the instant facts, the Learned CIT(Appeals) has not made any mention of the adjournment applications filed by the assessee seeking time to present its case on merits. Further, Learned CIT(A) passed ex parte appellate order dismissing the assessee's appeal on account of delay in filing the appeal and without going either into the merits of the case or discussing the various grounds of appeal filed by the assessee in his order.

It is incumbent on the Learned CIT(A) to make necessary enquiry either himself or through AO before passing the order. Further, Learned CIT(A) is obliged to decide each of the points arising out of the appeal i.e. grounds on merits have to be discussed even in an ex parte order. In view of section 250(4) and 250(6) of the Act, Learned CIT(A) has no power to dismiss an appeal on account of non-prosecution, without discussing the merits of the case.

In the case of Pawan Kumar Singhal v. ACIT, the Delhi ITAT held that Commissioner (Appeals) cannot dismiss assessee's appeal in limine for non-prosecution without deciding same on merits through an order in writing, stating points of determination in appeal, decision thereon and reason for decision.

The Learned CIT(A) has erred in facts and in law in summarily dismissing the assessee's appeal, by passing a non-speaking order, without making any mention of the various grounds of appeal raised by the assessee in his appellate order and without discussing the merits of the case. Therefore, in the interests of justice, present Tribunal is setting aside the case to the file of Learned CIT(A) for fresh adjudication on merits of the case, after giving due opportunity of hearing to the assessee to present its case on merits.

Tags : ASSESSMENT ENQUIRY OBLIGATION