CIT(A) Not Empowered To Dismiss An Appeal On Account Of Non-Prosecution: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the CIT(A) has no power to dismiss an appeal on account of non-prosecution.

The bench of Challa Nagendra Prasad (Judicial Member) and Pradip Kumar Kedia (Accountant Member) has referred to Section 250(6) of the Income Tax Act, which enjoins that the CIT(A) shall state the points for determination before it and the decision shall be rendered on such points along with reasons for the decision. Thus, it is incumbent upon the CIT (A) to deal with the grounds on merits even in ex parte order. In view of Section 250(6) of the Act, the CIT (A) has no power to dismiss an appeal on account of non-prosecution.

The appellant/assessee has challenged that order of the Commissioner of Income Tax (Appeals)-29, New Delhi, in assessment orders passed by the Assessing Officer. A notice of hearing was duly served on the assessee. As per the case records, none appeared from the assessee, despite service of notice on several occasions. Accordingly, the matter proceeded ex parte.

The CIT (A) has dismissed the appeal in limine on the grounds of non-prosecution of the appeal by the assessee before him. The CIT (A) has passed a cryptic order without any cogent discussion on merit.

The tribunal stated, “A bare glance of the order of the CIT(A) shows that the CIT(A) has not addressed itself on various points placed for its determination at all and dismissed the appeal of the assessee for default in non-appearance. Needless to say, the CIT (A) plays the role of both adjudicating authority and appellate authority. Thus, the CIT(A) could not have shunned the appeal for non-compliance without addressing the issue on its merits.”

The tribunal restored the matter back to the CIT(A) in the greater interest of justice with a view to enabling the assessee to avail proper opportunity for disposal of appeal by the CIT(A) on various points. The assessee is cautioned to extend full cooperation to the CIT(A) without any demur, failing which, the CIT(A) shall be at liberty to conclude the appellate proceedings in accordance with law. Hence, the order of the CIT(A) appealed against is set aside, and all the issues raised in the impugned appeal are restored back to the file of the CIT(A) for fresh adjudication in accordance with the law after giving a reasonable opportunity of hearing to the assessee.

Counsel For Appellant: None

Counsel For Respondent: R.K. Jain

Case Title: MARC Laboratories Ltd. Versus Deputy Commissioner of Income Tax

Case No.: I.T.As. No.2731, 2732, 2733, 2730, 2734 & 2735/DEL/2022

Click Here To Read The Order