INCOME TAX ACT, 1961

Section 251

Appeal [CIT (A)] - Order of CIT(A) - Validity - Dismissal of appeal for non-prosecution

Assessee-company filed an appeal before CIT(A). CIT(A) observed that the assessee adopted a casual approach and failed to put up an appearance, despite having been afforded sufficient opportunity. Accordingly, the CIT(A) dismissed the said appeal on the ground of non-attendance by the assessee. Held: CIT (A) summarily dismissed the appeal of the assessee for non-prosecution and failed to apply his mind to the issues which were assailed by the assessee before him. Once an appeal is preferred before the CIT(A), then it is obligatory on his part to dispose of the same on merits and it is not open for the CIT(A) to summarily dismiss the appeal on account of non-prosecution of the same by the assessee. As per section 251(1)(a) and (b), as well as the Explanation to section 251(2), the CIT(A) remains under a statutory obligation to apply his mind to all the issues which arises from the impugned order before him and the CIT(A) is not vested with any power to summarily dismiss the appeal for non-prosecution. Therefore, the order of the CIT(A) was set aside and the appeal was restored to the file of the CIT(A) with a direction to dispose of the same on merits.

REFERRED : CIT v. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bom) : 2016 TaxPub(DT) 3496 (Bom-HC)

FAVOUR : Matter remanded

A.Y. : 2010-11

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