The current appeal filed by the assessee was against an order made by the Division Bench of the Income Tax Appellate Tribunal. The Income Tax Appellate Tribunal, Allahabad will decide whether the impugned order needs to be dismissed and whether there should be a fresh adjudication for the issues faced by the assessee.
Facts
The current appeal filed by the assessee was against an order made by the Division Bench of the Income Tax Appellate Tribunal on 29th September 2019. The main issue of the case was that an assessment was done to the assessee by the A.O under Section 143 (3) and Section 144 of the Income Tax Act. During this time the A.O adjusted the assessee’s income to rupees 16,16,060 is against the returned income of the assessee of rupees 12,15,680.
Upset with the action of the A.O the assessee filed the first appeal to the CIT(A) which was dismissed. The assessee then filed a second appeal to the Income Tax Appellate Tribunal which was dismissed by CIT(A) ex-parte as the assessee was not present at the time of the hearing.
Arguments Advanced
The hearing was done through a video conferencing format.
Counsel stated that the assessee raised 12 grounds of appeal against A.O for making additions to the assessee’s returned income. However, CIT(A) dismissed the appeal in limine as the assessee was absent. The Counsel further added that the CIT(A) didn’t pay heed to the 12 grounds of merit provided by the assessee. The Counsel had also filed written submissions to the CIT(A) stating that the CIT(A) cannot dismiss the appeal in limine without discussing the grounds of merit. The Counsel also cited the Hon’ble Supreme Court in the case of CIT v. S. Chenniappa Mudaliar and the case of Partha Mitra v. ITO reported in 2016 and referred to Section 250 (6) of the Act.
The CIT(A) stated that the assessee wasn’t present at the time of the hearing.
Court Observations
The Tribunal paid heed to the Hon’ble Supreme Court in the case of CIT v. S. Chenniappa Mudaliar, the case of Partha Mitra v. ITO reported in 2016 and referred to Section 250 (6) of the Act. The Court also observed Section 144 and 143(3) of the Income Tax Act 1961 in order to understand why the A.O. adjusted the income of the assessee.
Decision
After listening to both sides, the Tribunal has come to the conclusion that the CIT(A) had to have discussed the 12 grounds of merit. The Tribunal believes that the A.O. should not have just dismissed the appeal in limine without providing proper reasoning behind it. The Tribunal has noticed how the assessee had failed to be present at the time of the hearing due to which the CIT (A) had to make decisions ex parte. Hence the assessee must also be blamed for the issue at hand.
Hence, the Tribunal dismissed the order made on 29th September 2019 and has directed the CIT(A) for fresh adjudication. However, if the assessee is not present this time, then the CIT(A) will be allowed to make whatever decision it pleases.
Click here to read the judgement.
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