PRAVIN RAJARAM THORAT,SATARA V. ITO WARD-1, SATARA

ITA 1457/PUN/2024

AI Insights

The case involves an appeal by the assessee, Pravin Rajaram Thorat, against the order of the Commissioner of Income Tax (Appeals) for the Assessment Year 2017-18. The primary issues in the appeal were the ex-parte dismissal of the assessee's appeal by the CIT(A) and the confirmation of an addition of Rs. 1,235,000 as unexplained money based on cash deposits in the assessee's account. The Tribunal found that the CIT(A) had not adjudicated the grounds raised by the assessee on merits and had dismissed the appeal without proper consideration or opportunity for the assessee to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472343 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHISHEK MESHR AM
• Assessee Lawyers: DEEPA KHARE
• Keywords: Set aside
• Section: 251; 246A

Judgement Text

" आयकर अपीलीय अिधकरण ”एस एम सी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC” :: PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1457/PUN/2024 िनधाᭅरण वषᭅ / Assessment Year: 2017-18 Pravin Rajaram Thorat, Karve Karad, Satara, Maharashtra – 415110. PAN: AFMPT4673F V s The Income Tax Officer, Ward-1, Satara. Appellant/ Assessee Respondent / Revenue Assessee by Smt. Deepa Khare – AR Revenue by Shri Abhishek Meshram–Addl.CIT(DR) Date of hearing 13/02/2025 Date of pronouncement 18/02/2025 आदेश/ ORDER PER DR. MANISH BORAD, AM: This is an appeal filed by the assessee against the order of ld.Commissioner of Income Tax(Appeals)[NFAC] for Assessment Year 2017-18 dated 27.07.2022 passed u/sec.250 of ITA No.1457/PUN/2024 [A] 2 the Income tax Act, 1961. The Assessee has raised the following grounds of appeal : “1. The ld.CIT(A) erred on facts and in law in dismissing appeal ex-parte when there was sufficient cause beyond control for non- compliance. 2. The CIT(A) erred on facts and in law in confirming addition of Rs.1235000 on account of unexplained money based on the cash deposit in assessee account. 3. The appellant craves leave to add, aler, modify or substitute any ground of appeal at the time of hearing.” 2. The ld.Authorised Representative(ld.AR) for the Assessee submitted that assessee’s appeal was dismissed by the ld.CIT(A) without discussing each and every ground and merits of the case and merely dismissed without providing proper opportunity of being heard. Hence, ld.AR requested for one more opportunity of being heard. ITA No.1457/PUN/2024 [A] 3 Submission of ld.Departmental Representative(ld.DR) : 3. The ld.DR for the Revenue relied on the order of Assessing Officer(AO) and ld.CIT(A)[NFAC]. Findings and Analysis : 3. We have heard both the parties and perused the records. It is observed from the order of the ld.CIT(A)[NFAC] that the ld.CIT(A)[NFAC] did not decide the grounds of appeal on merit but merely upheld the addition made by the Assessing Officer as assessee has not filed any reply before the ld.CIT(A). The ld.CIT(A) has not adjudicated grounds raised by the assessee on merits. 3.1 The Hon’ble Bombay High Court has held in the case of Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF)(Bombay)/[2017] 297 CTR 614 (Bombay) as under : ITA No.1457/PUN/2024 [A] 4 Quote, “8.From the aforesaid provisions, it is very clear once an appeal is preferred before the CIT(A), then in disposing of the appeal, he is obliged to make such further inquiry that he thinks fit or direct the Assessing Officer to make further inquiry and report the result of the same to him as found in Section 250(4) of the Act. Further Section 250(6) of the Act obliges the CIT(A) to dispose of an appeal in writing after stating the points for determination and then render a decision on each of the points which arise for consideration with reasons in support. Section 251(1)(a) and (b) of the Act provide that while disposing of appeal the CIT(A) would have the power to confirm, reduce, enhance or annul an assessment and/or penalty. Besides Explanation to sub-section (2) of Section 251 of the Act also makes it clear that while considering the appeal, the CIT(A) would be entitled to consider and decide any issue arising in the proceedings before him in appeal filed for its consideration, even if the issue is not raised by the appellant in its appeal before the CIT(A). Thus once an assessee files an appeal under Section 246A of the Act, it is not open to him as of right to withdraw or not press the appeal. In fact the CIT(A) is obliged to dispose of the appeal on merits. In fact with effect from 1st June, 2001 the power of the CIT(A) to set aside the order of the Assessing Officer and restore it to the Assessing Officer for passing a fresh order stands withdrawn. ITA No.1457/PUN/2024 [A] 5 Therefore, it would be noticed that the powers of the CIT(A) is coterminous with that of the Assessing Officer i.e. he can do all that Assessing Officer could do. Therefore just as it is not open to the Assessing Officer to not complete the assessment by allowing the assessee to withdraw its return of income, it is not open to the assessee in appeal to withdraw and/or the CIT(A) to dismiss the appeal on account of non-prosecution of the appeal by the assessee. This is amply clear from the Section 251(1)(a) and (b) and Explanation to Section 251(2) of the Act which requires the CIT(A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before him. Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act.” Unquote. 3.2. Thus, the Hon’ble Bombay High Court has categorically held that ld.CIT(A) has to decide the appeal on merit and ld.CIT(A) does not have any power to dismiss appeal for non- prosecution. 4. In view of the above, in the interest of justice, we set-aside the order of the ld.CIT(A) and restore it to the file of ld.CIT(A) ITA No.1457/PUN/2024 [A] 6 for necessary adjudication in accordance with Law. Ld.CIT(A) shall provide proper opportunity to the assessee. Assessee shall file all the necessary documents before the ld.CIT(A). Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose. 5. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 18th February, 2025. Sd/- Sd/- (ASTHA CHANDRA) (DR. MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 18th Feb, 2025/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “एस एम सी” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. ITA No.1457/PUN/2024 [A] 7 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune. "