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December 2024

S. 251 — CIT(A) is not vested with any power to summarily dismiss the appeal for non-prosecution and is obliged to dispose off the same on merit.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 2 mins

59 (2024) 167 taxmann.com 730 (Raipur Trib)

Avdesh Jain vs. ITO

ITA No.: 30(Rpr.) of 2024

A.Y.: 2010-11

Dated: 9th October, 2024

S. 251 — CIT(A) is not vested with any power to summarily dismiss the appeal for non-prosecution and is obliged to dispose off the same on merit.

FACTS

The assessee was engaged in the business of retail trading. He filed his return of income for AY 2010-11 by declaring an income of ₹4,67,200. The AO, on the basis of certain information shared by the Investigation Wing, initiated proceedings under section 147.

The AO observed that as the returned income of the assessee did not suffice to source the business expenditure of ₹8.24 lakhs that was incurred by him, he made an addition of the deficit amount of ₹3.56 lakhs as an unexplained expenditure under section 69C. He also made an addition towards deemed income of ₹60,000 under section 44AE. Accordingly, the AO passed an order under section 147 read with section 144 assessing the income of the assessee at ₹3.51 crores.

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