Sections 250 and 271AAA – Ex parte dismissal of appeal by CIT(A), without considering the material on record on the ground that the written submissions were not signed by the assessee, is contrary to the provisions of sub-section (6) of section 250

3. 118 taxmann.com 223 (Raj.)(Trib.) Keshavlal Devkaranbhai Patel vs. ACIT ITA No. 124 /Rajkot/2017 A.Y.: 2012-13 Date of order: 28^th July, 2020

Sections 250 and 271AAA – Ex parte dismissal of appeal by CIT(A), without considering the material on record on the ground that the written submissions were not signed by the assessee, is contrary to the provisions of sub-section (6) of section 250

FACTS

Aggrieved by the order levying penalty u/s 271AAA, the assessee preferred an appeal to the CIT(A). The assessee had filed his explanation before the A.O. and also before the CIT(A). However, the submissions filed before the CIT(A) were not signed by the assessee.

In view of this, the CIT(A) dismissed the appeal by recording that the assessee was not interested in pursuing the appeal.

Aggrieved, the assessee preferred an appeal to the Tribunal.

HELD

The Tribunal found the order of the CIT(A) to be very cryptic and not having any discussion on the material already available on record before him. The Tribunal observed that:

(i)   there is no valid and justifiable reason given by the appellate authority in his order while dismissing the claim of the assessee;

(ii)  the CIT(A) has recorded in his order that the assessee has filed written submissions in the office on 29^th August, 2017 but without signature, hence the same were not considered by the CIT(A); and

(iii) the CIT(A) dismissed the appeal for want of prosecution even when the written submission was on record which did not bear the signature of the assessee.

The Tribunal held that the CIT(A) ought to have adjourned the matter and passed a further direction to file fresh written submissions, duly signed. It is a basic principle that justice should not only be done, but it must also be seen to be done. In the absence of that, the Tribunal held, the order impugned is not in consonance with the spirit and object of sub-section (6) of section 250.

The Tribunal set aside the issue to the file of the CIT(A) with a direction to adjudicate it afresh after giving the assessee an opportunity of being heard and to pass a speaking order thereon keeping in mind, inter alia, the mandate of the provisions of section 250(6) in order to render true and effective justice.