Adim Jati Seva Sahkari Samiti Maryadit Korba Korba P.O Vs ITO-2 (Chhattisgarh High Court)
Chhattisgarh High Court held that upholding of addition by CIT(A) and ITAT merely on the basis of non-appearance without deciding the same on merits and complying with provisions of section 250(4) and 250(6) of the Income Tax Act is not justified. Accordingly, order set aside and matter restored back.
Facts- The substantial question of law involved in the present petition is that whether the CIT (Appeals) is justified in dismissing the appeal summarily without deciding the same on merits, by holding that the appellant/assessee has not appeared and supported the appeal, by recording a finding, which is perverse to the record?
Conclusion- Held that from perusal of the order of CIT (Appeals), it nowhere appears that any inquiry has been made as contemplated under Section 250 (4) and 250 (6) of the Act. Even if the appellant did not make his appearance, the points for determination ought to have been formulated, but the same has not been done as provided under Section 250 (6) of the Act. As such, order of the CIT (Appeals) is completely vitiated on account of non compliance of Sections 250 (4) and 250 (6) of the Act, which the ITAT was supposed to take note of and rectify the defects by directing the CIT (Appeals) to decide the appeal on merits after complying the provisions contained in Section 250 (4) and (6) of the Act, however, the ITAT has perpetuated the said illegality by affirming the order of the CIT (Appeals). In view of the above, the order passed by the CIT (Appeals) dated 14.12.2022 is hereby set aside and, subsequently, the order passed by the ITAT on 18.09.2023 is also set aside.
