2023 (7) TMI 221

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....pta, CA Respondent by: Shri Ram Dhan, Meena, Sr.DR ORDER PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the Assessee against the order of the Commissioner of Income Tax (Appeals)-XXVI, New Delhi ('CIT(A)' in short) dated 10.12.2021 arising from the assessment order dated 24.12.2018 passed by the Assessing Officer (AO) under Section 143(3) r.w. Section 147 of the I....

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.... Penalty' is in relation to breach of contract and hence not allowable deduction under Section 37(1) r.w. Explanation thereto of the Act. 4. Aggrieved by the disallowance, the assessee preferred appeal before the CIT(A). The CIT(A) however declined to give relief on the aforesaid disallowance and passed ex-parte order. The CIT(A) has thus not disposed of the appeal on merit but dismissed on the....

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....statutory impost but is in the nature of breach of contract and therefore cannot be equated with expression 'an offense or prohibition by law' as contemplated in Explanation-1 to Section 37 of the Act. The copy of agreement executed by the assessee dated 04.02.2010 with Government of Gujarat was referred to where penalty clause has been provided for breach of provisions of the contract. 7. We t....

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....ex-parte without expressing any opinion on merits. 8. In this backdrop, we straightaway refer to Section 250(6) of the Act which enjoins that the CIT(A) shall state the points for determination before it and the decision shall be rendered on such points along with reasons for decision. Thus, it is incumbent upon the CIT(A) to deal with the grounds on merits even in ex-parte order. In view of Se....