Yasmeen Shaikh Vs ITO (ITAT Bangalore)
CIT(A) cannot dismiss appeal for non-prosecution – Matter remanded for fresh adjudication : ITAT Bangalore
Bangalore ITAT has held that CIT(A) has no power to dismiss an appeal for non-prosecution. Once an appeal is filed, it is obligatory upon CIT(A) to adjudicate the matter on merits, irrespective of Assessee’s appearance.
Assessee challenged the reassessment order u/s 147 r.w.s. 144B, wherein the AO had made an addition of ₹10,60,100/- as unexplained cash deposit u/s 69. Appeal before CIT(A) (NFAC) was dismissed for non-compliance, as Assessee allegedly failed to respond to notices.
Assessee contended that the notices were sent to the wrong email ID (from the Income Tax portal), while the correct address was furnished in Form-35 at the time of filing the appeal. Assessee argued that since no notice was served on the correct email address, non-appearance was not deliberate. CIT(A) ought to have decided the matter on merits considering the submissions & documentary evidence (bank statements & cash book) already filed.
Tribunal noted that CIT(A) dismissed the appeal without deciding on merits & without serving notices on the email address provided in Form-35. Such dismissal was contrary to law, as the Bombay High Court in PCIT (Central) vs. Premkumar Arjundas Luthra (HUF) [2017] 297 CTR 614 had categorically held that CIT(A) is bound to adjudicate an appeal on merits u/s 250(6), that CIT(A) has powers coterminous with that of the AO & that once an appeal is filed, it cannot be dismissed for want of prosecution.
