Jain Steel Corporation Vs ITO (ITAT Agra)
ITAT Agra held that ex-parte dismissal of appeal, as notices issued by CIT(A) were not compiled, without adjudicating issues on merits is in violation of section 250(6) of the Income Tax Act. Hence, order set aside and matter remitted back to CIT(A) for fresh adjudication.
Facts- During scrutiny assessment, AO made addition to the tune of Rs. 20,90,250/- under section 68 of the Income Tax Act. CIT(A) dismissed the appeal of the assessee, as there was no compliance made by he assessee during appellate proceedings, and the assessment order was confirmed by CIT(A). Ex-parte order passed by CIT(A) is contested by the assessee as the same is stated to be in violation of section 250(6) of the Income Tax Act.
Conclusion- Held that dismissal of appeal by CIT(A) merely because the assessee did not comply with the notices issued by CIT(A) in limine without adjudicating issues arising in the appeal on merits, such order is not sustainable in the eyes of law keeping in view provisions of Section 250(6).
The appellate order of the CIT(A) is clearly in violation of section 250(6) of the Act and liable to be set aside. Merely stating the assessment order passed by AO is upheld, and that the assessee has not submitted details/documents is not sufficient. The ld. CIT(A) is not toothless as his powers are co- terminus with the powers of the AO., which even includes power of enhancement. The ld. CIT(A) is vested with vast powers under the 1961 Act. It is equally true that the assessee also did not complied with the notices issued by ld. CIT(A) and did not file the requisite details/documents to support his contentions. Thus, the assessee is equally responsible for its woes. Under these circumstances and fairness to both the parties, in the interest of justice, the appellate order of CIT(A) is set aside and the matter can go back to the file of ld. CIT(A) for fresh adjudication of the appeal of the assessee on merit in accordance with law after giving opportunities to both the parties.
