KSHIRSAGAR CONSTRUCTIONS CO PVT LTD., MUMBAI V. DCIT, CIR-5(2)(1), MUMBAI

ITA 1247/MUM/2023

AI Insights

The case involves Kshir Sagar Constructions Co. Pvt. Ltd., the appellant, contesting an order from the Commissioner of Income Tax (Appeals), which had dismissed their appeal for non-prosecution. The dismissal was based on the appellant's failure to respond to multiple notices. However, the Tribunal noted the absence of evidence regarding the service of these notices and highlighted the CIT(A)'s obligation to decide the appeal on its merits rather than dismiss it for non-prosecution. The Tribunal's decision to set aside the CIT(A)'s order and restore the appeal underscores the importance of procedural fairness and the right to be heard in tax litigation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133789 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 09-08-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 12-04-2023
• Other Referred Cases: CIT (Central), Nagpur Vs. Premkumar Arjundas Luthra (HUF)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAKASH KISHINCHANDANI
• Assessee Lawyers: HIMANSHI JAIN

Judgement Text

आयकर अपीलीय अिधकरण मुंबई पीठ “एच”, मुंबई ŵी िवकास अव̾थी,Ɋाियक सद˟ एवं सुŵी पȧावती एस,लेखाकार सद˟ के समƗ IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & MS. PADMAVATHY S, ACCOUNTANT MEMBER आअसं. 1247/मुं/2023 (िन.व. 2010-11) ITA NO.1247/MUM/2023 (A.Y.2010-11) Kshir Sagar Constructions Co. Pvt. Ltd. C-20, Bharat Nagar, Grant Road, Mumbai-400007. PAN: AAACK1671N ...... अपीलाथŎ /Appellant बनाम Vs. ITO-5 (2)(1), Mumbai. ..... Ůितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : Ms. Himanshi Jain Ůितवादी Ȫारा/Respondent by : Sh. Prakash Kishinchandani, Sr. DR सुनवाई की ितिथ/ Date of hearing : 10/08/2023 घोषणा की ितिथ/ Date of pronouncement : 10/08/2023 आदेश/ ORDER PER VIKAS AWASTHY, JM This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as ‘the CIT(A)’) dated 14.03.2023, for the Assessment Year 2010-11. 2. A perusal of the impugned order reveals that the CIT(A) has dismissed the appeal of assessee in-limine for non-prosecution. The CIT(A) in para-5.1 of the impugned order has tabulated the dates fixed for hearing of the appeal, the dates of issue of notice and the remarks indicating that on none of the dates the assessee responded to the notices issued by the CIT(A). The table shows that the CIT(A) had fixed the appeal for hearing on four occasions and had issued notices 2 आअसं. 1247/मुं/2023(िन.व. 2010-11) ITA Nos. 1247/M/2023 (AY 2010-11) for the same. The assessee has not responded to any of the said notices, however, it is not emanating from the impugned order the mode of issuance of notices and whether the notices issued by the CIT(A) were served on the assessee. It is not merely issuance of notice but the service of notice which is necessary for the assessee to know about the proceedings. 3. Be that as it may, the CIT(A) was duty bound to decide the appeal on merits. The provisions of the Act does not empower CIT(A) to dismiss appeal for non-prosecution [Re: CIT (Central), Nagpur Vs. Premkumar Arjundas Luthra (HUF), 69 taxmann.com 407 (Bom.)] 4. The impugned order is set-aside and appeal of the assessee is restored to the CIT(A) for adjudication on merits after affording reasonable opportunity of hearing/making submissions to the assessee, in accordance with law. 5. In the result, appeal of assessee is allowed for statistical purpose. Order pronounced in the open court on Thursday, the 10 th day of August, 2023. Sd/- Sd/- (MS. PADMAVATHY S) (VIKAS AWASTHY) लेखाकार सद˟/ACCOUNTANT MEMBER Ɋाियक सद˟/JUDICIAL MEMBER मुंबई/Mumbai, िदनांक/Dated: 10/08/2023 SK, Sr. PS Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ/The Appellant , 2. Ůितवादी/ The Respondent. 3. आयकर आयुƅ(अ)/ The CIT(A)- 4. िवभागीय Ůितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Mumbai 5. गाडŊ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, Mumbai