What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal and, for the interest of justice, remitted the appeal back to the Assessing Officer for fresh consideration. The assessee was directed to cooperate in the remand proceedings.

The assessee's appeal was dismissed by the CIT(A) for want of prosecution due to non-compliance during remand proceedings. The assessee contended that circumstances beyond their control prevented compliance and sought another opportunity.

What were the issues?

Whether the assessee should be granted another opportunity to present their case before the Assessing Officer after the appeal was dismissed for non-compliance.

Megacity Inn vs I.T.O., Ward - 1(1) | ITAT Kolkata 2026

Income Tax Appellate Tribunal, “C” BENCH, KOLKATA

Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No.1237/KOL/2026 Assessment Year: 2018-19 Megacity Inn.......................................................................................................Appellant Salt Lake Electronic Complex, Sector V, Naya Patty, Kolkata- 700101 [PAN No. ABEFM8988L] Vs. I.T.O. Ward- 1(1)..............................…………..…………………....……….Respondent Aayakar Bhawan, P-7, Chowringhee Square, Kolkata- 700069 Appearances by: I Banerjee, AR, appeared on behalf of the Appellant. Dhereaj, SR. DRPraveen Das Chowdhury, (Sr. D.R),appeared on behalf of the Respondent. Date of concluding the hearing : July 13, 2026 Date of pronouncing theorder : July 21 ,2026 ORDER Per Pradip Kumar Choubey, Judicial Member: This appeal filed by the assessee is directed against the order dated 07.10.2025 of the National Faceless Appeal Centre (NFAC), passed under Section 143(1) of the Assessment Year 2018-19 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”).

At the very outset, it appears from the report of the Registry that the appeal has been filed after a delay of 92 days. The assessee has filed an affidavit which is as below:- Keeping in view, the grounds mentioned in the affidavit as well as considering the catena of decision of the Apex Court on the point of limitation delay is hereby condoned.

The Ld. AR challenges the very impugned order thereby submitting that the appeal of the assessee has been dismissed by the CIT(A) for want of prosecution without adjudication the issue on merits. The Ld. AR prayed before us that one more opportunity has been given to the assessee to place his case before the Assessing Officers as in the present case proper verification of the documents are essential and it can be done by the AO. The Ld. ARfurther submits that there is no denying to this fact that earlier appeal of the assessee has been remitted back to the file of the CIT(A) to pass an order on merit after hearing the assessee but the circumstances which was beyond the control of the assessee that make the assessee non-compliant during the remand proceedings. The prayer of the AR is that for the interest of justice, one more opportunity given to the assessee to place his case before the Assessing Officers.

Contrary to that, Ld. DR supports the impugned order.

4. Upon hearing the submission of the counsel of the respective parties and on perusal of the impugned order, we find that CIT(A) has passed the order in limine. There was no adjudication on merit. The appeal of the assessee has been dismissed as there was non-compliance. It is a fact that by the order of the Tribunal passed in 08.07.2024 appeal of the assessee has been remitted back to the file of the CIT(A) with a direction to the assessee to cooperate in the proceedings but assessee failed. The prayer of the AR is that assessee has to give a one more opportunity to place his case before the Assessing Officer. Though, it is a case of second remand but for the interest justice, we are remitting the appeal of the assessee to the file of the AO with a direction to pass a fresh order after affording an opportunity to place his case. Assessee directed to cooperate in the remand proceedings. The AO as liberty to pass an order when assessee failed to make any compliance without being prejudice to this order. The order passed by the lower authority is hereby set aside. Appeal is remitted back to the file of the AO for fresh consideration.

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

Kolkata, the 21st July , 2026.

Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member

DC Dated: 21 . 07.2026.

Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- 5. CIT(DR)

//True copy// By order Assistant Registrar, Kolkata Benches

Sr. Particulars Date Initials Person No. concerned 1 Draft dictated on PS 2 Draft placed before author PS 3 Draft proposed & placed before the AM second Member 4 Draft discussed/approved by Second AM Member 7

5 Approved Draft comes to the Sr.PS/PS PS 6 Kept for pronouncement on PS 7 File sent to the Bench Clerk PS 8 Date on which file goes to the Head Clerk 9 Date of dispatch of Order 10 Dictation Sheet is attached herewith

MEGACITY INN,KOLKATA vs. I.T.O., WARD - 1(1), KOLKATA

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments