Indiaco Ventures Ltd, Mumbai vs Assessee

ी डी. क णाकर राव,ु लेखा सद य SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.7427/MUM/2014 नधा रण वष /Assessment Year 2008-09 Indiaco Ventures Ltd. बनाम/ Dy. Commissioner of Income C/o. Khandelwal & Tax 3(3), Vs. Associates, 404-407, Aaykar Bhavan, MK Road, Prospect Chambers, 317, Mumbai 400 020 DN Road, Fort, Mumbai 400 020 थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. :AAACS 9367H

(अपीलाथ /Appellant) .. ( यथ / Respondent)

Appellant by Ms. Hetal Panchal Respondent by Shri Kishan Vyas सनु वाई क" तार$ख / Da te o f Hearing : 21/05/2015 घोषणा क" तार$ख /Date of Pronouncement : 21/05/2015

आदे श / O R D E R

PER I.P.BANSAL, J.M:

This is an appeal filed by the assessee and it is directed against the order passed by Ld. CIT(A)-7, Mumbai dated 27/06/2014 for assessment year 2008-

09.

2. Grounds of appeal filed with the appeal are lengthy. However, it is the main grievance of the assessee that Ld. CIT(A) has committed an error in dismissing the appeal filed by the assessee on account of non-compliance of various notices to attend the appellate proceedings. It was submitted that Ld. 2 आयकर अपील सं. / ITA No.7427/MUM/2014 नधा रण वष /Assessment Year 2008-09

CIT(A) without going into the merits of the grounds raised has dismissed the appeal filed by the assessee as un-admitted for want of prosecution. It was submitted that no such power has been vested on the Ld. CIT(A) as according to provisions of law Ld. CIT(A) is required to decide the appeal filed by the assessee on merits. Reference in this regard was made to the decision of Ahmedabad ITAT in the case of Gujarat Themis Biosyn Ltd. vs Joint Commissioner Of Income Tax , 74 ITD 339 (Ahd), wherein it has been held that it is obligatory for Ld. CIT(A) to pass a speaking order stating points raised in appeal, his decision thereon and reason for such decision. Thus, it was held that it is not possible for Ld. CIT(A) to dismiss the appeal in-limine. The mandate of law makes it very clear that Ld. CIT(A) has duly bound to decide the issue on merits. Thus, it was pleaded that the matter may be restored to the file of Ld. CIT(A) and Ld. A.R of the assessee assured that assessee will comply with the notices issued by Ld. CIT(A).

3. On the other hand, Ld. DR relied upon the order passed by Ld. CIT(A).

4. We have heard both the parties and their contentions have carefully been considered. According to aforementioned decision of Ahmedabad Bench, CIT(A) does not have power to dismiss the appeal filed by the assessee in-limine on account of non-prosecution. Thus, the order passed by Ld. CIT(A) suffers from infirmity as he has not decided the issue on merits. Therefore, we consider it just and proper to restore this appeal to the file of Ld. CIT(A) with a direction to re-adjudicate the appeal on merits after giving the assessee a reasonable opportunity of hearing and placing material on record to support the grounds of appeal. To ensure compliance by the assessee we have directed Ld. AR to appear before Ld. CIT(A) on 29/06/2015, to which Ld. AR has agreed. On the said date Ld. CIT(A) would take up the appeal for hearing. We direct accordingly.

3 आयकर अपील सं. / ITA No.7427/MUM/2014 नधा रण वष /Assessment Year 2008-09

5. In the result, the appeal filed by the assessee is considered to be allowed for statistical purposes in the manner aforesaid.

Order pronounced in the open court on 21/05/2015 आदे श क" घोषणा खुले यायालय म* +दनांकः 21/05/2015 को क" गई ।

Sd/- Sd/- (डी. क णाकर रावु / D.KARUNAKARA RAO) (आय.पी. बंसल / I.P. BANSAL) लेखा सद य / ACCOUNTANT MEMBER या यक सद य / JUDICIAL MEMBER मुंबई Mumbai; +दनांक Dated 21/05/2015 आदे श क त ल प अ!े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. आयकर आयु/त(अपील) / The CIT(A)- 4. आयकर आय/ ु त / CIT 5. 0वभागीय त न2ध, आयकर अपील$य अ2धकरण, मंब ु ई / DR, ITAT, Mumbai 6. गाड फाईल / Guard file.

आदे शानुसार/ BY ORDER, स या0पत त //True Copy//

उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील य अ धकरण, मुंबई / ITAT, Mumbai व. न.स./Vm, Sr. PS