Suresh Kumar Vs ITO (ITAT Chennai)
CIT(A) Can’t Dismiss Appeal for Non-Prosecution — Chennai ITAT Restores 147 r/w 144B Assessment for Fresh Decision
The Chennai ITAT (C Bench) partly allowed the appeal of Shri Suresh Kumar (AY 2019-20) and set aside the ex-parte order of the CIT(A), holding that an appeal cannot be dismissed in limine for non-prosecution without adjudicating the issues on merits.
The AO had completed a best-judgment assessment u/s 147 r/w 144 & 144B, determining total income at ₹2.55 crore, after reopening the case on the basis of information regarding sale of immovable property for ₹36.58 lakh and non-compliance with notices u/s 148 & 142(1). The CIT(A), NFAC dismissed the Assessee’s appeal solely for non-appearance.
The Tribunal held that Section 250(6) mandates the CIT(A) to frame points for determination and pass a reasoned order on merits, even where the Assessee does not appear. Reliance was placed on the Bombay High Court decision in PCIT vs Premkumar Arjundas Luthra, which makes it clear that appellate authorities cannot summarily dismiss appeals for non-prosecution.
Accordingly, the ITAT remanded the matter to the file of the CIT(A) with a direction to decide the appeal de novo on merits after granting reasonable opportunity of hearing to the Assessee. The appeal was thus partly allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT CHENNAI
