laconic and non-speaking order of learned CIT(A) is not sustainable - ITAT allows appeal for statistical purpose

Last updated: 22 January 2021

Save Share

Quick Summary

The Income Tax Appellate Tribunal (ITAT) has allowed an appeal for statistical purposes after finding the Commissioner of Income Tax (Appeals) [CIT(A)] order unsustainable. The CIT(A) had dismissed the assessee's appeal without discussing the merits of the case, citing a lack of credible arguments from the assessee during hearings. The ITAT noted that the CIT(A) failed to provide a reasoned decision on the grounds of appeal.

Court :
ITAT Mumbai

Brief :
This is an appeal by the assessee against the order of learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] dated 10.3.2015 pertaining assessment year 2007-08 wherein learned CIT(A) has dismissed the appeal without any discussion on merits by simply noting the grounds and observing as under :-

Citation :
I.T.A. No. 4554/Mum/2017

THE INCOME TAX APPELLATE TRIBUNAL
“SMC” Bench, Mumbai
Shri Shamim Yahya (AM)

I.T.A. No. 4554/Mum/2017
(Assessment Year 2007-08)

Shri Devendra C. Vibhakar
101-B, Ramjas CHSL
Devidas Lane, Borival i-W
Mumbai-400 103.
PAN : AAAPV5079J
(Appellant)

Vs.

ITO -25(1) (1)
Mumbai
(Respondent)

Assessee by Shri Paresh Gohil
Department by Ms. Smita Verma

Date of Hearing 16.12.2020
Date of Pronouncement 1.1.2021

O R D E R

This is an appeal by the assessee against the order of learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] dated 10.3.2015 pertaining assessment year 2007-08 wherein learned CIT(A) has dismissed the appeal without any discussion on merits by simply noting the grounds and observing as under :-

“The assessment was completed u/s 143(3) on 30.11.2009 at a total income of Rs.11,73,710/- as against the returned income of Rs.1,73,710/-. Thereafter, the case was selected for scrutiny u/s 148 of the I.T. Act afterrecording the reasons for re-opening of assessment. Notice u/s 142(1) of the Act was issued on 4.9.2012 and 4.1.2013.

The AO raised the issue regarding unproved liability, unexplained cash creditu/s 68 and unexplained investment. Explanation offered of the assessee hasnot been accepted by the AO and the addition was made against which the assessee is in appeal.

After having filed the appeal, however, despite fixing the case for hearing on 4 different occasions, no credible argument/ explanation has been provided bythe assessee to substantiate the claim in respect of grounds of appeal and therefore, the issue cannot be taken up on merit. In the light of the above facts, the appeal is dismissed.”

To know more in details find the attachment file

FAQ :

The CIT(A) dismissed the assessee's appeal without discussing the merits of the case, simply noting the grounds and stating that no credible arguments were provided by the assessee.

The ITAT allowed the appeal for statistical purposes because the CIT(A)'s order was considered unsustainable due to its lack of discussion on the merits of the case.

The original assessment was completed at a higher income than returned, with the Assessing Officer making additions for unproved liability, unexplained cash credit, and unexplained investment.

According to the CIT(A)'s order, despite multiple hearing dates, the assessee did not provide credible arguments or explanations to substantiate their claims.

Attached File : 40_3225_1610524279_4554_devendra_c.pdf

downloaded 218 times