What did the Tribunal hold?

The Tribunal held that the CIT(A)'s order did not comply with Section 250(6) of the Act as it was not decided on merits. The Tribunal restored the appeal to the CIT(A) for a fresh decision after providing the assessee an opportunity to be heard.

The assessee's appeal before the CIT(A) was dismissed ex-parte due to non-compliance with notices. The assessee requested an opportunity to present their case on merits, arguing the CIT(A) did not decide the appeal on merits.

What were the issues?

Whether an ex-parte dismissal by the CIT(A) without deciding on merits is sustainable, and if an opportunity should be granted to the assessee to present their case.

Saisudhir Energy Limited vs ACIT | ITAT Hyderabad 2023

Income Tax Appellate Tribunal, HYDERABAD BENCHES “A”, HYDERABAD

Before: SHRI RAMA KANTA PANDA & SHRI K.NARASIMHA CHARY

Hearing: 26/07/2023

निर्धारितीती द्वारा /Assessee by: Shri S. Rama Rao, AR राजस्‍वजस्‍व द्वारा Shri Shakeer Ahamed, Sr. DR /Revenue by: सुनवाई ई की तारीखरीख/Date of hearing: 26/07/2023 घोषणा की तारीखरीख/Pronouncement on: 31/07/2023 आदेश / ORDER PER K. NARASIMHA CHARY, JM: Aggrieved by the order dated 16/02/2023 passed by the learned Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of Saisudhir Energy Limited (“the assessee”) for the assessment year 2017-18, assessee preferred this appeal.

At the outset, it is the submission on behalf of the assessee that the Ld. CIT(A) disposed-of the appeal ex-parte observing that various notices under section 250 of the Income Tax Act, 1961 (for short “the Act”) were issued to the assessee, but the assessee failed to comply with any of such notices nor did the assessee make any written submissions.

Learned AR submitted that even otherwise also the Ld. CIT(A) could have referred to the facts and dispose-of the matter on merits so as to have effective assistance to the higher appellate fora. Learned AR submits that in the interest of justice, an opportunity may be granted to the assessee to effectively prosecute her appeal, by restoring the appeal to the file of the Ld. CIT(A).

Though the learned DR vehemently oppose the request of the assessee, the facts remains that the Ld. CIT(A) did not refer to the facts nor did he dispose of the appeal on merits. Even in the absence of the assessee, it is always open for the Ld. CIT(A) to deal with the matter on merits instead of dismissing the same in limine.

Having regard to the facts and circumstances of the case, we are of the considered opinion that the impugned order does not comply with the requirement of Section 250 (6) of the Act and cannot be sustained. If the request of the learned AR is granted affording an opportunity to the assessee to prosecute her appeal before the Ld. CIT(A) by submitting the evidences, the highest that would happen is that a cause could be decided on merits. When the technicalities are pitted against the delivery of substantial justice, the former must give way to the later.

With this view of the matter, we set aside the impugned order and restore the appeal to the file of the Ld. CIT(A). We direct the assessee to co-operate with the first appellate authority in getting the matters disposed of on merits without seeking any adjournments and the Ld. CIT(A) to take a fresh look at the matter, after affording a reasonable opportunity to the assessee of being heard. We order accordingly.

In the result, appeal of the assessee is treated as allowed for statistical purposes.

Order pronounced in the open court on this the 31st day of July, 2023.

SAISUDHIR ENERGY LIMITED,HYDERABAD vs. ACIT, CIRCLE-1, ANANTAPUR

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