Non-Adjudication and Failure to State Point of Determination u/s 250(6) of Income Tax: ITAT remands Matter to CIT(A) [Read Order]

The Pune Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the matter to the Commissioner Of Income Tax (Appeals) due to non-adjudication and failure to state the point of determination under Section 250(6) of the Income Tax Act, 1961.

A search and seizure was conducted in the residential premises of Baburao D Chandere and his family members under section 132 of the Income Tax Act, 1961 wherein the residential premises of the Suhas Maruti Dhankude (assessee) were also covered. The assessee had not filed income tax returns for the assessment years 2012-13, 2013-14, 2017-18, and 2018-19. Subsequently, the assessee’s case was transferred to the Central Circle-2(4), Pune.

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The assessing officer initiated proceedings under section 153C of the Income Tax Act and issued notice. Then, the assessee filed an income tax return declaring Rs.1,80,000 and  Rs.2,00,000 for the assessment years 2012-13 and 2013-14. The assessing officer scrutinized the income tax filing of the assessee.

Due to non-compliance, the AO preceded with ex-parte and completed the assessment under Section 144 r.w.s. 153C of the Income Tax Act by making various additions under section 69A of the Act and also under Section 69.

The assessee filed separate appeals before the CIT(A) against the assessments. The assessee challenged the use of Section 153C and the ex-parte additions made without following the principles of natural justice. Regrettably, the CIT(A) dismissed the order labeling them as "general in nature" and not needing separate consideration.

The same happened for the income tax return submission in the assessment years 2017-18 and 2018-19. The aggrieved assessee filed separate appeals before the ITAT, Pune questioning the CIT(A) dismissal of his appeal without adjudicating the matter.

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The two-member bench comprising G.D. Padmahshali (Accountant Member) and Vinay Bhamore (Judicial Member) observed that the CIT(A) erred in not adjudicating the legal grounds related to Section 153C jurisdiction. The Tribunal noted that the CIT(A) passed the order without recording his independent findings.

The Tribunal emphasized the principle laid down by the Supreme Court in the case of Chandra Kishore Jha vs Mahavir Prasad which held the statutory requirements must be followed strictly. Due to the non-adjudication of legal grounds raised and failure to state the point of determination, the tribunal set aside the impugned order and remanded the matter to the file of the Commissioner of Income Tax (Appeals). The appeal of the assessee was allowed.

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