Maa Chintpurni Mining Pvt Ltd Vs ITO (ITAT Ranchi)
ITAT Ranchi held that dismissal of appeal by CIT(A) on account of non-prosecution without deciding the matter on merits is unsustainable in law. Accordingly, matter remanded back for de novo adjudication.
Facts- The assessee is engaged in the business of mining and filed its return of income electronically on 29.10.2015 declaring total income at Rs.21,960/-. The case of the assessee was selected under limited scrutiny under CASS for the reason ‘large share premium received during the year’. During the assessment proceedings, the assessee failed to substantiate the nature of amount received to the tune of Rs.68,11,000/- whether it was share premium or otherwise to the satisfaction of the AO. It is further stated that the assessee did not make due compliance to notices issued from time to time. Thus, the AO framed the assessment u/s.144 of the Act assessing total income at Rs.68,32,955/- after making addition of Rs.68,11,000/- on account of unexplained cash credit u/s.68 of the Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the matter needs de novo adjudication of the grounds of appeal by the ld.CIT(A)/NFAC after taking account the reply and other supporting material as claimed by the assessee to have been filed on e-portal. Thus, the appeal has been not been decided on merits due to miscommunication between the department and the assessee. Reference is made to provisions of Section 250(6) of the 1961 Act, wherein CIT(A) is obligated to state points for determination in appeal before him, the decision thereon and the reasons for determination. He has no power to dismiss appeal of assessee on account of non-prosecution and without deciding on the merits of the case.
