CIT has No Power to summarily dismiss Appeal for Non-Prosecution: ITAT asks to dispose of Appeal in Merits [Read Order]

The Income Tax Appellate Tribunal (ITAT), Raipur bench consisting of Ravish Sood, Judicial Member and Rathod Kamlesh Jayantbhai, Accountant Member asked to dispose appeal in merits as CIT has no power to summarily dismiss appeal for non-prosecution.

The assessee, Vishnu Kumar Sinha had filed its return of income for the assessment year 2012-13 on 28.09.2012, declaring an income of Rs.1,00,97,250/-. Original assessment was framed by the Assessing Officer (A.O) passed u/s.143(3) wherein after scaling down the assessee’s claim for deduction u/s.54F of the Act qua the expenditure of Rs.9,73,800/- which was stated to have been incurred towards cost of interior work that was after purchase of a new residential house, its income was determined at Rs.1,07,18,940/-. Aggrieved, the assessee carried the matter in appeal before the Commissioner of Income Tax (CIT). Observing, that the assessee despite having been put to notice had neither participated in the appellate proceedings nor placed on record any written submissions, the CIT dismissed the appeal for non-prosecution on the part of the assessee. The assessee being aggrieved with the order of the CIT has carried the matter in appeal before the ITAT.

The Tribunal relied on the judgment in CIT v. Premkumar Arjundas and held that “it is not open to the assessee in appeal to withdraw and/or the CIT(A) to dismiss the appeal on account of non-prosecution of the appeal by the assessee. This is amply clear from the s. 251(1)(a) and (b) and Explanation to Sec. 251(2) of the Act which requires the CIT(A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before him. Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act.”

To Read the full text of the Order CLICK HERE

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