Bharatkumar Rajashree Vs ITO (ITAT Bangalore)
CIT(A) cannot Shun Duty; Ex-Parte Dismissal Quashed, Appeal Sent Back for fresh hearing: ITAT Bangalore; Dismissal of Appeal for Non-Prosecution by CIT(A) Held Invalid – Matter Restored for Fresh Adjudication
Bangalore ITAT has held that CIT(A) cannot dismiss an appeal for non-prosecution without adjudicating the grounds on merits. The case arose from an appeal filed by Assessee against the order of CIT(A), emanating from an assessment order passed u/s 143(3) on 22nd December 2018 for the assessment year 2016-17. The dispute pertained to an addition of ₹33,45,000 representing one-third share of deposits of ₹1,00,35,000 in a joint bank account treated as unexplained cash credits u/s 68.
Assessee contended that the appellate authority dismissed the appeal ex-parte without affording a proper opportunity of hearing and without dealing with the specific grounds raised.
Tribunal found merit in the contention, observing that CIT(A) had merely sustained the addition citing non-compliance & absence of evidence, but had failed to adjudicate the grounds on merits. Relying PCIT (Central) v. Premkumar Arjundas Luthra (HUF) [2017] 297 CTR 614 Bom-HC, Tribunal reiterated that once an appeal is filed before CIT(A), it is obligatory for him to dispose it off by a speaking order, discussing points for determination and giving reasons in support of his conclusions. The law does not empower CIT(A) to dismiss the appeal for non-prosecution &he is bound to adjudicate all issues arising from the assessment order irrespective of whether they are specifically raised by the assessee.
