JIVHALA SAHAKARI PATPEDHI LIMITED,MUMBAI vs. THE INCOME TAX OFFICER, WARD 20(2)(1), MUMBAI, MUMBAI

This appeal has been preferred by the assessee against the order dated 10.07.2025, impugned herein, passed by the National Faceless Appeal Centre (NFAC) / Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961. (in short ‘the Act’) for A.Y. 2020-21.

Admittedly, in this case, the Ld. Commissioner failed to decide the appeal on merit filed against the assessment order dated 08.09.2022 under section 143(3) r.w.s. 144B of the Act and therefore, the impugned order is liable to be set aside specifically in Jivhala Sahakari Patpedhi Limited view of the judgment of the Hon’ble Jurisdictional High Court in the case of Commissioner of Income Tax vs Premjimar Arjundas (HUF) of 2013 dated 25.04.2016 (2017) 297 CTR (Bom) 614, wherein it has been held “that it is not open to the Ld. CIT(A) to dismiss the appeal on account of non-prosecution. Further, law does not empower to the CIT(A) to dismiss the appeal for non- prosecution, as is evident from the provisions of the Act.

Thus, the impugned order is set aside and the case is remanded to the file of the Ld. Commissioner for decision on merit, suffice it to say while affording reasonable opportunity of being heard to the assessee.

In the result, the appeal of the assessee is allowed.