Satish Laxman Patil, Dhule vs Assessee

Satish Laxman Patil, Plot No.54, Vrindavan Colony, Deopur, Dhule - 424 001. PAN : AGFPP7729L .... Appellant

Vs.

Income Tax Officer, Ward 3(2), Dhule. .... Respondent

Assessee by : None Department by : Mr. Santosh Kumar Date of hearing : 04-02-2015 Date of pronouncement : 18-03-2015

ORDER

PER G. S. PANNU, AM

The captioned appeal by the assessee is directed against the order of

the Commissioner of Income Tax (Appeals)-II, Nashik dated 07.03.2011

which, in turn, has arisen from an order dated 28.12.2007 passed by the

Assessing Officer u/s 144 of the Income-tax Act, 1961 (in short "the Act")

pertaining to the assessment year 2005-06.

2. In this appeal, assessee has raised the following Grounds of Appeal :-

"1) On the facts and in law the Ld. CIT(A) has erred in confirming the Order of Assessment passed by the learned ITO(CIB), Nashik u/s 144, by determining Income to the tune of Rs.10,12,500/-.

2) On the facts and in law the Ld. CIT(A) has erred in not appreciating the fact that the ITO (CIB), Nashik does not hold jurisdiction of the assessee, and assessee is a regular tax payer and also filed his Return of Income, for the corresponding year under appeal."

3. It was noticed that on the appointed date of hearing, none appeared on

behalf of the assessee and nor any application seeking adjournment was 2 ITA No.2164/PN/2013

moved by the assessee inspite of the fact that the appeal was fixed

consequent to the adjournment application moved by the assessee on the

earlier date of hearing. For the aforesaid reasons, having regard to the rule 24

of the Appellate Tribunal Rules, 1963, the appeal of the assessee is being

disposed-off by ex-parte qua the appellant-assessee and after hearing the Ld.

Departmental Representative on merits.

4. In this appeal, primary dispute between the assessee and the Revenue

arises from an assessment order passed by the Assessing Officer ex-parte u/s

144 of the Act dated 28.12.2007 whereby the cash deposits found to have

been made by the assessee in his saving bank account was considered as an

unexplained investment, thereby resulting in an addition of Rs.10,12,500/-.

We find that the CIT(A) has not adjudicated on the efficacy of such addition on

its merit but the appeal of the assessee has been dismissed primarily on the

ground of non-appearance by the assessee on the appointed dates of hearing.

While the CIT(A) is competent to proceed to dispose of the appeal before him

ex-parte, having regard to the facts and circumstances of the case, however,

sub-section (6) of section 250 of the Act requires that the CIT(A) ought to

dispose of the appeal of the assessee by stating the points for determination,

the decision thereon and the reasons for the decision. In other words, the

CIT(A) ought to have dealt with the issues raised by the assessee in his

appeal on their merit and the appeal could not have been dismissed by the

CIT(A) merely noticing the absence of the assessee. We therefore deem it fit

and proper to set-aside the order of the CIT(A) and restore the matter back to

his file who shall dispose of the appeal by stating the points for determination

before him, the decision thereon and the reasons for the decision as

mandated by sub-section (6) of section 250 of the Act. On this point, we may

also make it clear that before proceeding to dispose of the appeal, the CIT(A) 3 ITA No.2164/PN/2013

shall allow the assessee a reasonable opportunity of being heard, and only

thereafter pass an order afresh as per law.

5. Thus, without going into the efficacy of the Grounds of Appeal raised by

the assessee before us, we deem it fit and proper to restore the appeal back

to the file of the CIT(A), as above.

6. In the result, the appeal of the assessee is treated as partly allowed for

statistical purposes.

Order pronounced on 18 th March, 2015.

Sd/- Sd/-/- (SUSHMA CHOWLA) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEMBER

Pune, Dated: 18 th March, 2015. Sujeet

Copy of the order is forwarded to: - 1) The Assessee; 2) The Department; 3) The CIT(A)-II, Nashik; 4) The CIT-II, Nashik; 5) The DR "B" Bench, I.T.A.T., Pune; 6) Guard File. By Order //True Copy// Assistant Registrar I.T.A.T., Pune