Appellate Tribunal partially allows assessee's appeal, stresses merit consideration in reassessment.

The Appellate Tribunal partially allowed the appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2009-2010. The Tribunal emphasized the importance of considering merits before dismissing an appeal and directed the matter to be reconsidered by the CIT(A) in accordance with the law.

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Issues: Appeal against order of Commissioner of Income Tax (Appeals) for Assessment Year 2009-2010, Disallowance of set off and carry forward loss, Disallowance of purchases of diamonds, Appeal filed manually instead of electronically, Dismissal of appeal by CIT(A) in limine without considering merits

In the case, the appellant, a company engaged in trading gold, diamond, and silver ornaments, filed an appeal against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2009-2010. The Assessing Officer disallowed the set off and carry forward loss of B32,26,332/- and purchases of diamonds from M/s. Navkar of B4,86,000/-. The appellant preferred an appeal before the CIT(A) manually, but the CIT(A) raised concerns regarding the manual filing instead of electronic filing as prescribed by the Income Tax Rules. The CIT(A) dismissed the appeal in limine as the appellant did not respond to the notice. The appellant, aggrieved by this decision, appealed before the Appellate Tribunal.

During the appeal before the Appellate Tribunal, the appellant's Authorized Representative argued that the appeal was filed manually within the prescribed period of limitation. The Tribunal noted that the right of appeal is a substantive right and procedural provisions should be construed to advance justice. Referring to a decision of the Calcutta High Court, the Tribunal held that the CIT(A) should not have dismissed the appeal in limine without considering the merits of the assessments. Therefore, the Tribunal remitted the matter back to the CIT(A) for de novo adjudication after providing the appellant with a due opportunity of hearing in accordance with the law. The appeal filed by the assessee was partly allowed for statistical purposes.

In conclusion, the Appellate Tribunal partially allowed the appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2009-2010. The Tribunal emphasized the importance of considering merits before dismissing an appeal and directed the matter to be reconsidered by the CIT(A) in accordance with the law.

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