Case Law Details
Bimla Devi D/o. Shri Phool Chand Vs ITO (ITAT Delhi)
The issue under consideration is whether the ex-parte order passed by CIT(A) without discussing merit of the case is justified in law?
ITAT studied the matter and state that it is pertinent to note that the CIT(A) has passed ex-parte order and dismissed the appeal for non prosecution. The CIT(A) has not at all discussed the merit of the case. Hence, it will be appropriate to remand back the matter to the file of the CIT(A) for fresh adjudication on merit. The assessee be given opportunity of hearing by following principles of natural justice.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal is filed by the assessee against the order dated 23/01/2019 passed by CIT(A)-Hisar, for Assessment Year 2009-10.
2. The grounds of appeal are as under:-
“1. That both the initiation of proceedings under section 147 of the Act and, completion of assessment under section 147/143(3) of the Act were without jurisdiction and hence deserve to be quashed as such.
1.1 That since there was no specific relevant, reliable and tangible material on record to form a “reason to believe” that income of the appellant had escaped assessment and in view thereof the proceedings initiated are illegal u/s 147 of the Act, untenable and therefore unsustainable.
1.2 That reasons were recorded mechanically without application of mind and therefore do not constitute valid “reason to believe” for assumption of jurisdiction u/s 147 of the Act.
1.3 That in absence of any valid approval obtained under section 151 of the Act, initiation of proceedings u/s 147 of the Act and assessment framed u/s 147/143(3) of the Act are invalid and deserve to be quashed as such.
2. That the learned Commissioner of Income Tax (Appeals) has further erred both in law and on facts in disposing off the appeal ex-partee without granting any fair opportunity of being heard to the appellant.
2.1 That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that there was reasonable cause for the appellant for not causing appearance on the dates fixed for hearing and as such disposal of the appeal without granting fair, meaningful and proper opportunity is untenable.
2.2. That even otherwise, an order passed in limini without effectively disposing of the grounds raised by the appellant is in infraction of section 250(6) of the Act and as such, order so made is otherwise too illegal, invalid and a vitiated order.
3. That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in upholding the addition of Rs. 12,00,000/- representing alleged unexplained deposits in the bank account of the appellant.
PRAYER: It is therefore prayed that, it be held that order disposing of the appeal expartee by the learned Commissioner of Income Tax (Appeals) be set-aside. It is further prayed that assessment made by the learned Assessing Officer and sustained by the learned Commissioner of Income Tax (Appeals) deserves to be quashed as such. It is also prayed that, addition made and sustained by the learned Commissioner of Income Tax (Appeals) may kindly be deleted and, appeal of the appellant be allowed”
3. The assessee did not file return of income for Assessment Year 2009-10. Return declaring total income amounting to Rs. 24,600/- was filed by the assessee on 19/09/2016 in response to notice u/s 148 of the Income Tax Act, 1961. The assessment was completed thereby making an addition of Rs. 12,00,000/- in respect of unexplained deposits.
4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.
5. The Ld. AR submitted that the CIT(A) has passed ex-parte order and no notice has been received by the assessee. Therefore, the Ld. AR requested that the matter may be remanded back to the file of the CIT(A) to decide the issues contested before the CIT(A) on merit.
6. The Ld. DR relied upon the assessment order and the order of the CIT(A).
7. We have heard both the parties and perused the material available on record. It is pertinent to note that the CIT(A) has passed ex-parte order and dismissed the appeal for non prosecution. The CIT(A) has not at all discussed the merit of the case. It will be appropriate to remand back the matter to the file of the CIT(A) for fresh adjudication on merit. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Thus, appeal of the assessee is partly allowed for statistical purpose.
8. In result, the appeal of the assessee is partly allowed for statistical purpose.
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