Ganesh Agro Steel Industries Vs ACIT (ITAT Pune)
Appeal cannot be thrown out without speaking order- CIT(A) must decide on merits, not just non-prosecution: Rules ITAT Pune
Assessee, a partnership firm, filed return declaring a loss of ₹8.23 lakh. The assessment was later reopened u/s 147 based on information of alleged bogus purchases. AO disallowed purchases worth ₹1.18 crore, treating them as non-genuine.
On appeal, CIT(A) dismissed the case ex-parte for non-prosecution, relying on B.N. Bhattacharjee (118 ITR 461 SC) & Chemipol (Bom HC), without adjudicating the merits of the case.
Tribunal noted that order has been passed by CIT(A) ex-parte qua assessee & CIT(A) dismissed appeal of Assessee for non-prosecution, endorsing the findings of AO. Assessee submits that it is in a position to substantiate its case by filing the requisite details/ documents before CIT(A) & therefore requested for remand of the matter to the file of CIT(A). Tribunal held that no doubt, CIT(A) may decide the appeal ex-parte where the Assessee does not prosecute his appeal in spite of several opportunities. None-the-less, he has to adhere to the legislative mandate enshrined in sub-section (6) of section 250 which requires him to state the points for determination, the decision thereon & the reason for the decision. But CIT(A) has passed the order in concurrence of the order of AO without himself going into the merits of the case & thus his order is in violation of the provisions of section 250(6).
