CIT Appeals must pass speaking order even in ex-parte cases. ITAT Delhi, in a recent case remanded back the appeal of the assessee which was dismissed in limine by CIT(A) for non appearnace.
Case Law Details:
I.T.A .No.-2379/Del/2015 (ASSESSMENT YEAR-2010-11)
Abhinav Dwivedi vs ITO
Date of Judgment/Order: 04/05/2016
Brief Facts of the Case:
The appeal in reference was filed by the appellant assessee challenging the correctness of the order of CIT(A), Ghaziabad. CIT(A) had passed an ex-parte order and dismissed the appeal of the assessee in limine on the ground that no one was present on assessee’s behalf on various dates fixed for hearing.
Important Excerpts from ITAT Judgment:
On consideration of the impugned order, we find that the statutory mandate of the Act has not been followed by the Ld. CIT(A) in deciding the appeal. Section 250(6) of the Income Tax Act, 1961 mandates that the CIT(A) shall pass a speaking order, the specific sub-section is reproduced hereunder for ready-reference:-
250.
“(1) ………………………………………….
(2) …………………………………………………
(3) …………………………………………………
(4) ………………………………………………….
(5) ………………………………………………….
(6) The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision. (6A)………………………………………………………….”
The specific provision requires the First Appellate Authority to set out points for determination and the decision thereon supported by reasons for arriving at a conclusion. The said mandatory exercise in the aforesaid provision in the peculiar facts of the present case is found to be not fulfilled. Accordingly holding the impugned order violative of the statutory mandate it is set aside back to the file of the CIT(A) to make good the statutory deficit. Needless to say that before passing the order, a reasonable opportunity shall be provided to the assessee. While so directing it is hoped that the opportunity so provided is not abused by the assessee and is utilized in good faith as failing which the Ld. CIT(A) would be at liberty to pass a speaking order in accordance with law on the basis of material available on record.
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