Subramaniyam Kulandhaivel Vs ITO (ITAT Chennai)
ITAT Chennai held that passing of ex-parte order by CIT(A) due to non-compliance of assessee without going into merits is not justifiable. CIT(A) is bound to decide the appeal on merits even in the absence of assessee. Accordingly, matter restored back.
Facts- The present appeal has been preferred by the appellant. It is mainly contested that CIT(A) has passed ex-parte order since there was no compliance on the part of the assessee. It is contested that CIT(A) has dismissed the appeal of the assessee in-limine without adjudicating the issues on merits.
Conclusion- Held that the CIT(A)-NFAC has simpliciter dismissed the appeal for non-compliance and not adjudicated or decided merits of the case. We find that appellate authority has no jurisdiction to dismiss the appeal for default of non-compliance without going into merits. The CIT(A) is bound to decide the appeal on merits even in the absence of assessee.
On perusal of the assessment order, we note that the assessment has also been completed on best judgment basis u/s.144 of the Act since the assessee was a non-compliant and has not produced any details / documents / clarification / evidences in spite of ample opportunities given by the AO. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the AO and the FAA. However in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO with a condition assessee pays a cost of Rs.25,000/-. Accordingly, the matter is remitted to the files of the AO for fresh adjudication.
