ITAT Jaipur: Ex Parte Dismissal by CIT(A) Set Aside for Violation of Section 250(6) — Ram Borewell & Construction Company vs ACIT

Case Background

Case: Ram Borewell & Construction Company Vs ACIT (ITAT Jaipur)
Assessment Year: 2011-12
Date of Order: 03rd June, 2019

The ITAT Jaipur examined an appeal filed by a partnership firm engaged in civil construction activities, challenging the ex parte order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2011-12. The underlying assessment had been framed under Section 143(3) read with Section 254 of the Income Tax Act, 1961.

Facts of the Case

The assessee, a partnership firm carrying on civil construction work, had originally filed its return of income declaring a total income of Rs. 16,69,040/. However, the Assessing Officer (AO) completed the assessment at a significantly higher total income of Rs. 1,74,70,140/-, invoking the provisions of Section 143(3) read with Section 254 of the Income Tax Act, 1961.

Aggrieved by the AO's order, the assessee preferred an appeal before the CIT(A). The matter was first scheduled for hearing on 31.10.2018. On three separate occasions prior to the final date, the assessee sought adjournments, all of which were granted by the CIT(A). Despite these granted adjournments, the CIT(A) proceeded to dismiss the appeal on 03.12.2018 — barely two months after the first hearing date — on the ground of non-prosecution.

Contentions Before the Tribunal

Assessee's Submissions

The Authorised Representative (AR) of the assessee submitted before the Tribunal that: