ARUMUGA NAINAR, CHENNAI V. ITO NON CORPORATE WARD-1(1), CHENNAI

ITA 254/CHNY/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3667 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-10-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 30-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 143(3); 101

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , , BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ./ ITA NO.: 254/CHNY/2020 [ [ /ASSESSMENT YEAR: 2015-16 SHRI ARUMUGA NAINAR.M, NO.2, VENKATESA AGRAHARAM ROAD, MYLAPORE, CHENNAI 600 004. PAN : AAEPA 4886A V. THE ITO, NON-CORPORATE WARD-1(1) CHENNAI - 34. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI N.V. BALAJI, ADVOCATE /RESPONDENT BY : SHRI AR.V. SREENIVASAN, ADDL.CIT /DATE OF HEARING : 11.10.2021 /DATE OF PRONOUNCEMENT : 11.10.2021 / O R D E R PER MAHAVIR SINGH, VP: THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2, CHENNAI IN ITA NO.178/CIT(A)-2/2017-18/AY 2015-16 DATED 25.10.2019. THE ASSESSMENT WAS FRAMED BY THE INCOME TAX OFFICER, NON- CORPORATE WARD 1(1), CHENNAI U/S 143(3) OF THE INCOME TAX 2 I.T.A. NO. 254/CHNY/2020 ACT, 1961 (HEREINAFTER THE ACT) FOR THE A.Y. 2015-16 VIDE ORDER DATED 28.12.2017. 2. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE SHRI N.V. BALAJI TOOK US THROUGH THE ORDER OF CIT(A) DATED 25.10.2019 FOR THE ASSESSMENT YEAR 2015-16 AND STATED THAT THE CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION, FOLLOWING THE DECISIONS OF HONBLE SUPREME COURT IN THE CASE OF CIT VS. B.N. BHATTACHARGEE AND ANOTHER, 118 ITR 461 AND HONBLE MADHYA PRADESH HIGH COURT IN THE CASE OF ESTATE OF LATE TUKOJIRAO HOLKAR VS. CWT, 223 ITR 480 (M.P). THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE CIT(A) IS A QUASI JUDICIAL AUTHORITY AND IN THE STATUTE OF INCOME TAX ACT, CIT(A) CANNOT DISMISS THE APPEAL FOR DEFAULT EXPRESSLY OR BY INEVITABLE IMPLICATION, BUT THE APPELLATE AUTHORITY HAS TO DECIDE THE APPEAL ON MERITS. THE APPELLATE AUTHORITY HAS NO JURISDICTION TO DISMISS THE APPEAL FOR DEFAULT BUT HE IS BOUND TO DECIDE THE APPEAL ON MERITS EVEN IN THE ABSENCE OF THE ASSESSEE. THIS VIEW HAS BEEN TAKEN BY THE HONBLE HIGH COURT OF MADRAS IN THE CASE OF SOUTHERN STEEL INDUSTRIES VS. AAC (CT), [1996] 101 STC 273 (MAD). HENCE, THE LD.COUNSEL STATED THAT THIS ORDER 3 I.T.A. NO. 254/CHNY/2020 SHOULD BE SET ASIDE AND MATTER MAY BE REMANDED BACK TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION AFTER ALLOWING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3. ON THE OTHER HAND, THE LD. SENIOR DEPARTMENTAL REPRESENTATIVE STATED THAT THE MATTER WAS POSTED ON NUMBER OF TIMES, AS NOTED BY THE CIT(A), BUT THERE WAS NO RESPONSE FROM THE ASSESSEE. 4. AFTER HEARING BOTH THE SIDES, WE ARE OF THE VIEW THAT THE CIT(A) IS A QUASI JUDICIAL AUTHORITY AND IN THE STATUTE OF INCOME TAX ACT, CIT(A) CANNOT DISMISS THE APPEAL FOR DEFAULT EXPRESSLY OR BY INEVITABLE IMPLICATION, BUT THE APPELLATE AUTHORITY HAS TO DECIDE THE APPEAL ON MERITS. THE APPELLATE AUTHORITY HAS NO JURISDICTION TO DISMISS THE APPEAL FOR DEFAULT BUT HE IS BOUND TO DECIDE THE APPEAL ON MERITS EVEN IN THE ABSENCE OF THE ASSESSEE. WE FURTHER NOTED THAT, THIS VIEW HAS BEEN TAKEN BY THE HONBLE HIGH COURT OF MADRAS IN THE CASE OF SOUTHERN STEEL INDUSTRIES VS. AAC (CT), [1996] 101 STC 273 (MAD). HENCE, DISMISSAL FOR DEFAULT BY CIT(A) IS BAD IN LAW AND ACCORDINGLY, WE SET ASIDE THE ORDER OF CIT(A). THE APPEAL IS REMANDED BACK 4 I.T.A. NO. 254/CHNY/2020 TO THE FILE OF CIT(A) FOR FRESH ADJUDICATION, AFTER ALLOWING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE ORDER ACCORDINGLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH OCTOBER, 2021 AT CHENNAI. SD/- SD/- ( ) (MANOJ KUMAR AGGARWAL) /ACCOUNTANT MEMBER ( ) (MAHAVIR SINGH) /VICE PRESIDENT /CHENNAI, /DATED, THE 11 TH OCTOBER, 2021 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. /GF.