2020 (11) TMI 930

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....owing grounds of appeal before us: "1. (a) The Id. Commissioner of Income Tax (Appeals) - 20, Mumbai ('the Id. CIT(A)") erred in facts and law in dismissing the appeal filed by the assessee on the ground on nonappearance, without properly serving the notices for hearing. (b) The order passed by the Ld. CIT(A) be set aside to his file for want of proper adjudication, in light of principles of natural justice. 2. The Id. CIT(A) erred in facts and law in confirming the action of the Id. Assessing Officer in making an addition of Rs. 2,23,51,193/- being commission income @ 2% on sales, on his own surmises and conjectures. 3. The Id. CIT(A) erred in facts and law in confirming the action of the ld. Assessi....

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....year under consideration may not be considered as structured transactions, and accordingly, deemed proportionate commission received on the total sales may not be added to its total income. In reply, the assessee emphasized on the genuineness of the transactions and declined of having carried out any structured transactions. However, the A.O after deliberating on the facts available on record rejected the aforesaid claim of the assessee. Holding a conviction that the assessee company had carried out structured transactions on commission basis, the A.O worked out its commission income from providing of entries of sales amounting to Rs. 1,11,75,59,692/- @ 2%, and therein, computed its commission income at Rs. 2,23,51,193/-. Apart from that....

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....ained to proceed with and dispose off the appeal as per Rule 24 of the Appellate Tribunal Rules, 1963 after hearing respondent revenue and perusing the orders of the lower authorities. 6. We have heard the Ld. Departmental Representative (for short 'D.R'), perused the orders of the lower authorities and the material available on record. 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 were assailed by the assessee before him. Be that as it may, we are not impressed with the dismissal of the appeal by the CIT(A) for non-prosecution, without application of mind by him to the ....

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....deration with reasons in support. Sec. 251(1)(a) and (h) of the Act provide that while disposing of appeal 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.....