RUPALI DILIP LAGAD,PUNE vs. THE INCOME TAX OFFICER, WARD 6(5), PUNE

Findings and analysis: We have heard both the parties and perused the record. In this case, the Ld. CIT(A) has observed that the assessee failed to file reply to the notice dated 01.04.2024, 16.05.2025, 23.12.2025, 02.02.2026 and finally on 12.02.2026.

The Hon‟ble Bombay High Court has held in the case of Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF) (Bombay) / [2017] 297 CTR 614 (Bombay) as under : Quote, “8.From the aforesaid provisions, it is very clear once an appeal is preferred before the CIT(A), then in disposing of the appeal, he is obliged to make such further inquiry that he thinks fit or direct the Assessing Officer to make further inquiry and report the result of the same to him as found in Section 250(4) of the Act. Further Section 250(6) of the Act obliges the CIT(A) to dispose of an appeal in writing after stating the points for determination and then render a decision on each of the points which arise for consideration with reasons in support. Section 251(1)(a) and (b) of the Act provide that while disposing of appeal the CIT(A) would have the power to confirm, reduce, enhance or annul an assessment and/or penalty. Besides Explanation to sub-section (2) of Section 251 of the Act also makes it clear that while considering the appeal, the CIT(A) would be entitled to consider and decide any issue arising in the proceedings before him in appeal filed for its consideration, even if the issue is not raised by the appellant in its appeal before the CIT(A). Thus once an assessee files an appeal under Section 246A of the Act, it is not open to him as of right to withdraw or not press the appeal. In fact the CIT(A) is obliged to dispose of the appeal on merits. In fact with effect from 1st June, 2001 the power of the CIT(A) to set aside the order of the Assessing Officer and restore it to the Assessing Officer for passing a fresh order stands withdrawn. Therefore, it would be noticed that the powers of the CIT(A) is coterminous with that of the Assessing Officer i.e. he can do all that Assessing Officer could do. Therefore just as it is not open to the Assessing Officer to not complete the assessment by allowing the assessee to withdraw its return of income, it is not open to the assessee in appeal to withdraw and/or the CIT(A) to dismiss the appeal on account of non-prosecution of the appeal by the assessee. This is amply clear from the Section 251(1)(a) and (b) and Explanation

Thus, the Hon‟ble Bombay High Court has categorically held that Ld. CIT(A) has to decide the appeal on merit and Ld. CIT(A) does not have any power to dismiss appeal for non- prosecution.

In view of the above, the order of the Ld. CIT(A) is set-aside to Ld.CIT(A) for denovo adjudication. The Ld. CIT(A) shall provide opportunity of hearing to the assessee.

In the result, the appeal of the assessee is allowed for statistical purpose.