S.MeenakshiSundaram, Madurai V. ITO NC Ward 2(4), Madurai

ITA 808/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7986 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 26-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K HARI GOVIND
• Assessee Lawyers: N DEVANATHAN
• Keywords: Set aside

Judgement Text

, / , IN THE INCOME TAX APPELLATE TRIBUNAL C SMC BENCH, CHENNAI ... , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER ./ ITA NO.808/CHNY/2019 ' #$' / ASSESSMENT YEAR : 2013-14 SHRI S. MEENAKSHISUNDARAM, 82A, NORTH STREET, PALANGANATHAM, MADURAI 626 003. PAN : AJSPM 3695 G V. THE INCOME TAX OFFICER, NON CORPORATE WARD 2(4), MADURAI. (&'/ APPELLANT) (()&'/ RESPONDENT) &' * + / APPELLANT BY : SH. N. DEVANATHAN, ADVOCATE ()&' * + / RESPONDENT BY : SHRI K. HARI GOVIND, JCIT , # * -. / DATE OF HEARING : 10.07.2019 /0$ * -. / DATE OF PRONOUNCEMENT : 15.07.2019 / O R D E R THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -2, MADURAI, D ATED 25.01.2019 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2. SH. N. DEVANATHAN, THE LD.COUNSEL FOR THE ASSESS EE, SUBMITTED THAT THE CIT(APPEALS) HAS DISMISSED THE APPEAL FOR NON-PROSECUTION WITHOUT DISCUSSING ANYTHING ON MERIT. THEREFORE, A CCORDING TO THE LD. COUNSEL, THE ORDER OF THE CIT(APPEALS) IS NULLITY, HENCE, NEEDS TO BE 2 I.T.A. NO.808/CHNY/19 QUASHED. ACCORDING TO THE LD. COUNSEL, RECORDING O F REASONS IS ESSENTIAL PRE-CONDITION FOR DISPOSING OF THE APPEAL. ACCORDI NG TO THE LD. COUNSEL, THE ASSESSING OFFICER DISALLOWED 20% OF EXPENSES ON AD HOC BASIS. THE ASSESSING AUTHORITY HAS NO JURISDICTION TO DISALLOW THE EXPENDITURE ON AD HOC BASIS. THEREFORE, ACCORDING TO THE LD. COUNSEL , THERE IS NO JUSTIFICATION IN THE ORDERS OF BOTH THE AUTHORITIES BELOW. 3. ON THE CONTRARY, SHRI K. HARI GOVIND, THE LD. DE PARTMENTAL REPRESENTATIVE, SUBMITTED THAT THE CIT(APPEALS) HAS GIVEN AMPLE OPPORTUNITIES, ALMOST SIX OPPORTUNITIES. STILL, TH E ASSESSEE FAILED TO APPEAR BEFORE HIM. THEREFORE, ACCORDING TO THE LD. D.R., THE CIT(APPEALS) FOUND THAT SINCE THE ASSESSEE HAS NOT AVAILED THE OPPORTUNITIES AND NO MATERIAL IS AVAILABLE ON RECOR D, HE DISMISSED THE APPEAL. 4. HAVING HEARD SH. N. DEVANATHAN, THE LD.COUNSEL F OR THE ASSESSEE AND SHRI K. HARI GOVIND, THE LD. D.R., THI S TRIBUNAL FINDS THAT THE CIT(APPEALS) DISMISSED THE APPEAL WITHOUT DISCU SSING ON MERIT. THE CIT(APPEALS), UNDER THE SCHEME OF INCOME-TAX ACT, I S THE FIRST APPELLATE AUTHORITY HAVING ALL THE POWERS OF THE ASSESSING OF FICER. IN OTHER WORDS, THE CIT(APPEALS) HAS POWER WHICH IS COTERMINOUS WIT H THAT OF THE ASSESSING OFFICER. THE INCOME-TAX ACT SPECIFICALLY EMPOWERS THE CIT(APPEALS) TO ENHANCE THE ASSESSMENT IN CASE THE ASSESSING OFFICER FAILED TO ASSESS ANY SOURCE OF INCOME OR PART THERE OF. THEREFORE, THE 3 I.T.A. NO.808/CHNY/19 CIT(APPEALS) HAS TO EXAMINE THE APPEAL ON MERIT AFT ER CALLING FOR RECORDS FROM THE ASSESSING OFFICER EVEN IN CASE WHERE THE A SSESSEE HAS NOT APPEARED BEFORE HIM. IN THE CASE BEFORE US, NO DOU BT, THE ASSESSEE FAILED TO APPEAR BEFORE HIM EVEN AFTER SEVERAL OPPO RTUNITIES. THE FAILURE OF THE ASSESSEE TO APPEAR BEFORE THE CIT(APPEALS) D OES NOT EMPOWER THE CIT(APPEALS) TO DISMISS THE APPEAL FOR NON-PROS ECUTION OR WITHOUT PASSING ANY SPEAKING ORDER. 5. EVEN THOUGH THE ASSESSEE HAS NOT COOPERATED OR F AILED TO APPEAR BEFORE THE CIT(APPEALS) EVEN AFTER DUE OPPORTUNITIE S, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE CIT(APPEALS) BEING THE FIRST APPELLATE AUTHORITY UNDER THE SCHEME OF THE INCOME-TAX ACT, H AS TO CALL FOR RECORDS FROM THE ASSESSING OFFICER AND DISPOSE THE APPEAL O N MERIT. SINCE SUCH AN EXERCISE WAS NOT DONE BY THE CIT(APPEALS), THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE MATTER NEEDS TO BE RE-E XAMINED BY THE CIT(APPEALS). ACCORDINGLY, THE ORDER OF THE CIT(AP PEALS) IS SET ASIDE AND THE ENTIRE ISSUE IS REMITTED BACK TO THE FILE O F THE CIT(APPEALS). THE CIT(APPEALS) SHALL RE-EXAMINE THE MATTER IN THE LIG HT OF THE MATERIAL THAT MAY BE FILED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPO RTUNITY TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4 I.T.A. NO.808/CHNY/19 ORDER PRONOUNCED IN THE COURT ON 15 TH JULY, 2019 AT CHENNAI. SD/- ( ... ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 2 /DATED, THE 15 TH JULY, 2019 KRI. * (-34 54$- /COPY TO: 1. &' /APPELLANT 2. ()&' /RESPONDENT 3. , 6- () /CIT(A)-2, MADURAI 4. PRINCIPAL CIT, MADURAI-1, MADURAI 5. 4#7 (- /DR 6. 8' 9 /GF.