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Facts
The assessee preferred an appeal against an order of the Commissioner of Income Tax (Appeals) which dismissed the appeal against an assessment order. The assessment order included an addition of Rs. 18,50,745/- on account of short-term capital gains. The CIT(A) dismissed the appeal in limine, without deciding on merits.
Held
The Tribunal, following the Jurisdictional High Court's ruling, held that the CIT(A) cannot dismiss an appeal without adjudicating on merits, even in cases of non-prosecution. Therefore, the case was remanded to the CIT(A) for a decision on merits.
Key Issues
Whether the CIT(A) can dismiss an appeal in limine without adjudicating on merits, and if not, the appropriate course of action.
Sections Cited
144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Mumbai “SMC” Bench, Mumbai.
(Assessment Year : 2015-16) Vasant Ganesh Marathe ITO Ward 19(2)(2) Room No. 70, Moiddin Chawl, Kautilya Bhavan Kalina Village, Santacruz East Vs. Bandra East Mumbai-400 057. Mumbai-400 051. PAN : AJNPM5644C Appellant Respondent Assessee by : Shri Suresh Otwani, Ld. AR Revenue by : Shri Praveen K. Srivastav, Ld. DR Date of Hearing : 20/11/2025 Date of pronouncement : 30/12/2025 O R D E R Per Narender Kumar Choudhry (JM) :-
This appeal has been preferred by the assessee against the order dated 5.8.2025 impugned herein passed by the Learned Commissioner of Income Tax (Appeals) Mumbai (in short Ld. Commissioner) under section of the Income Tax Act, 1961 (in short „Act‟) for A.Y. 2015-16.
In the instant case, admittedly the Ld. Commissioner vide impugned disposed of/ dismissed the appeal filed against the assessment order dated 23.1.2022 under section 144 and 144B of the Act, whereby the addition of Rs. 18,50,745/- on account of short term capital gains has been made by the Assessing Officer, in limine, but not on merits of the case. Thus, this Court by respectfully following the Judgement of Hon'ble Jurisdictional High Court in the case of Hon'ble Bombay High Court in the case of Premkumar Arjundas Luthra HUF (69 Taxman.com 407)(Bom),
2 wherein it has been held “that the CIT{A} does not have power to dismiss the appeal without adjudicating the matter on merits, even on non-prosecution” is inclined to remand instant case to the file of the Ld. Commissioner for decision on merit, suffice to say by affording adequate opportunity of being heard to the assessee.
This Court also deem it appropriate to direct the Assessee to comply with the notices to be issued by Ld. Commissioner and shall file relevant submissions and documents. In case of default, the Assessee shall not be entitled for any leniency.
Thus, the case is accordingly remanded to the file of the Ld. Commissioner for decision on merit.
In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 30/12/2025.