TMI Blog2020 (11) TMI 930X X X X Extracts X X X X X X X X Extracts X X X X ..... er, a perusal of Sec.251(1)(a) and (b), as well as the Explanation to Sec. 251(2) reveals that the CIT(A) remains under a statutory obligation to apply his mind to all the issues which arises from the impugned order before him. In our considered view, the CIT(A) is not vested with any power to summarily dismiss the appeal for non-prosecution - See PREMKUMAR ARJUNDAS LUTHRA (HUF) [ 2016 (5) TMI 290 - BOMBAY HIGH COURT] . Thus dismissal of the appeal by the CIT(A) for non-prosecution, thus, set aside the same to his file with a direction to dispose off the appeal on merits. Appeal of the assessee is allowed for statistical purposes. - ITA No.971/Mum/2019 - - - Dated:- 16-10-2020 - Shri N.K. Pradhan, Accountant Member And Shri Ravish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amend, delete or modify any or all the grounds of appeal. 2. Briefly stated, the assessee company had filed its return of income for A.Y. 2010-11 on 15.10.2010, declaring its total income at Rs. nil. The return of income filed by the assessee company was processed as such under Sec. 143(1) of the Act. Subsequently, the case of the assessee was selected for scrutiny assessment under Sec. 143(2) of the Act. 3. During the course of the assessment proceedings the A.O in order to verify the veracity of the sales and purchases of goods of ₹ 1,11,75,59,692/- and ₹ 1,11,73,31,063/-, respectively, therein issued notices under Sec. 133(6) to the concerned parties therein calling upon them to furnish certain information w.r.t their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eason, that the genuineness of the same had remained unproved. Accordingly, the disallowance of ₹ 35,494/- i.e @ 20% of its total claim of expenses of ₹ 1,77,471/- was made by the A.O. On the basis of his aforesaid observations the A.O assessed the total income of the assessee company at ₹ 2,24,46,730/-. 4. Aggrieved, the assessee carried the matter in appeal before the CIT(A). Observing, that the assessee had adopted a casual approach and had failed to put up an appearance despite having been afforded sufficient opportunity, the CIT(A) dismissed the appeal on the ground of non-attendance by the assessee. At this stage, we may herein observe, that the CIT(A) while dismissing the appeal of the assessee had failed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en for the CIT(A) to summarily dismiss the appeal on account of non-prosecution of the same by the assessee. Rather, a perusal of Sec.251(1)(a) and (b), as well as the Explanation to Sec. 251(2) reveals that the CIT(A) remains under a statutory obligation to apply his mind to all the issues which arises from the impugned order before him. In our considered view, the CIT(A) is not vested with any power to summarily dismiss the appeal for non-prosecution. Our aforesaid view is fortified by the judgment of the Hon ble High Court of Bombay in the case of CIT Vs. Prem Kumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bom) . In the aforementioned case the Hon ble jurisdictional High Court had observed as under: 8 . From the aforesaid pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O could do. Therefore, just as it is not open to the AO to not complete the assessment by al lowing the assessee to withdraw its return of income, it is not open to the assessee in appeal to withdraw and/or the CIT(A) to dismiss the appeal on account of non-prosecution of the appeal by the assessee. This is amply clear from the s. 251(1)(a) and (b) and Explanation to Sec. 251(2) of the Act which requires the CIT(A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before him. Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act. 7. We thus not being persuaded to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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