CIT(A) is expected to decide Appeal with reasons determining the points u/s 250(6) of the Income Tax Act: ITAT [Read Order]

The Pune bench of the Income Tax Appellate Tribunal has held that under section 250(6) of the Income Tax Act, the CIT(A) is expected to decide the appeal with reasons determining the points thereon.

The assessee, an individual engaged in the business of agricultural and trading, has filed return of income declaring total income of Rs. 1,35,74,303/-. In scrutiny assessment, the A.O determined the same at Rs. 1,56,61,536/-, making an addition on account of payment of commission. Since the assessee failed to produce documents to justify the claim, the A.O added the said amount to the total income of the assessee and being aggrieved with the addition made by the A.O, the assessee challenged the same before the CIT(A). The CIT(A) issued an ex-parte order for want of representation. The assessee approached the Tribunal for relief.

The bench comprising Shri Inturi Rama Rao (AM) and Shri S.S. Viswanethra Ravi (JM) noted that the assessee pleaded before the CIT(A) that all the payments on account of commission were made through account payee cheques and also pleaded that the assessee is ready to produce such evidence whenever opportunity comes for the same.

“Therefore, it is clear that the assessee is ready to produce evidence in support of the contention regarding payment of commission and there was no opportunity for him in the first appellate proceedings. Admittedly, the CIT(A) did not dispose of the appeal on merits, but however, he disposed of the case as discussed above, ex parte of assessee. Under sub-section (6) of section 250, the CIT(A) is expected to decide the appeal with reasons determining the points thereon. As we noted above, the appeal was disposed of by the CIT(A) ex parte of assessee. We therefore, deem it proper to remand the matter to the file of the CIT(A) and the assessee is at liberty to file evidence, if any, in support of his claim,” the bench said.

To Read the full text of the Order CLICK HERE

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