TMI Blog2020 (1) TMI 1563X X X X Extracts X X X X X X X X Extracts X X X X ..... (A), it is obligatory on his part to dispose off the appeal on merits. We are of a strong conviction that it is not open 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. As per the mandate of law, 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) [ 2016 (5) TMI 290 - BO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and glow sign boards had e-filed its return of income for A.Y. 2014-15 on 28.11.2014, declaring its total income at ₹ 45,22,220/-. The return of income filed by the assessee 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 made the following disallowances to the returned income of the assessee: Sr. No. Particulars Amount 1. Disallowance under Sec. 40(a)(ia) of event management expenses: ₹ 9,02,748/- 2. Adhoc disall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed representatives for both the parties, perused the orders of the lower authorities and the material available on record. Admittedly, the CIT(A) had disposed off the appeal by way of an ex-parte order, for the reason, that the assessee despite having been put to notice about the hearing of the appeal had failed to comply with the same. On a perusal of the order of the CIT(A), we find that he had summarily dismissed the appeal of the assessee for non- prosecution and had failed to apply his mind to the issues which arose from the impugned order and had been assailed by the assessee before him. We are unable to persuade ourselves to accept the manner in which the appeal of the assessee had been disposed off by the CIT(A). In our considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal the CIT(A) would have the power to confirm, reduce, enhance or annul an assessment and/or penalty. Besides Explanation to sub-s. (2) of s. 251 of the Act also makes it clear that while considering the appeal, the CIT(A) would be entitled to consider and decide any issue arising in the proceedings before him in appeal filed for its consideration, even if the issue is not raised by the appellant in its appeal before the CIT(A). Thus once an assessee files an appeal under s. 246A of the Act, it is not open to him as of right to withdraw or not press the appeal. In fact the CIT(A) is obliged to dispose of the appeal on merits. In fact w.e.f. 1st June, 2001 the power of the CIT(A) to set aside the order of the AO and restore it to the AO fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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