ITAT restored Matter to CIT(A) for lack of jurisdiction

Issue before tribunal:

• Whether CIT (A) has no jurisdiction to entertain the appeal filed by assessee.
• Whether CIT (A) was right in sustaining the additions made by AO which are not applicable to the assessee.

Brief facts:

• Assessee filed its return of income and his case was was picked up under scrutiny.
• Additions were made on account of disallowance of interest paid on compensation.
• Aggrieved from the order of assessment, assessee filed appeal before CIT (A)-XXXII, New Delhi. During the course of appellate proceeding written submissions were also filed before CIT (A).
• Subsequently notice was issued by CIT (A)-VI regarding date of hearing, which was claimed as not received by the assessee.
• CIT (A) dismissed appeal ex-parte in limine.

Contention of the revenue:

• CIT (A) has observed that notices were issued and served through registered post and all the dates are mentioned in the order of CIT (A).
• In case where assessee is not present matter has to be decided ex-parte as per ratio laid down in CIT VS. Multiplan (India)(P) Ltd. (1991) 38 ITD 320 (Del) and in Estate of Late Tukoji Rao Holkar CWT (1997) 223 ITR 480 (MP).

Contention of the assessee:

• No notice is received from the office of CIT (A)-VI and even the order of CIT (A) was served through Assessing Officer.
• assessee submitted that the assessee’s jurisdiction lay with CIT(A) XXXII and not with CIT(A) VI, who dismissed the assessee’s appeal ex-parte in limine.
• CIT (A)-VI has no jurisdiction to decide the case of assessee.

Held by the court:

The matter need to restore to the file to CIT (A) to decide the appeal again after considering the submissions of the assessee regarding correct jurisdiction of CIT (A).

Conclusion:

An assessment or appeal or any legal proceedings must be proceeded with the authority who assign jurisdiction over such assessee/individual/person.