SEKAR SAMBANDAM ASHWINGIRI,CHENNAI vs. ITO, NCW-1(1), CHENNAI

आयकर अपीलीय अिधकरण ”ए” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCHES “A” :: CHENNAI BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.737/CHNY/2026 िनधा�रण वष� / Assessment Year: 2020-21 Sekar Sambandam Ashwingiri, Vs Income Tax Officer, No.20, South Road, West CIT Non Corp Ward-1(1), Nagar, Chennai – 600035. Chennai. PAN: AUGPA9459B Appellant/ Assessee Respondent / Revenue Assessee by Mr.Raghav Rajeev Menon – Advocate Revenue by Ms.Sandhya Rani Kure – JCIT Date of hearing 16/04/2026 Date of pronouncement 07/05/2026 आदेश/ ORDER PER INTURI RAMA RAO, AM : This appeal filed by the Assessee directed against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], Delhi dated 12.01.2026 passed under section 250 of the Income Tax Act, 1961 for the A.Y.2020-21.

“1. The order of the Learned Commissioner of Income Tax (Appeals), Chennai u/s.250 of the Income Tax Act, 1961 is opposed to law, facts and circumstances of the case. 2. The Learned CIT(A) failed to appreciate the fact that notice under section 148 was issued by the Assessing officer instead of the Faceless Assessing officer. 3. The Learned CIT(A) erred in confirming the addition of Rs.11,71,707/- without considering the facts of the Case. 4. The Learned CIT(A) erred in confirming the addition made at 8% of the Gross turnover. 5. The Assessee submits that the notices issued by the CIT(A) has been served to the id has stated in the Return of Income and not to the email id as per the Income tax portal. 6. For the aforesaid grounds and for other grounds to be raised at the time of hearing, the order of CIT(A) may be quashed and justice be rendere.” 3. Briefly the facts of the case are that the appellant is an Individual. The return of income u/.139 of the Act for the Assessment Year 2020-21 was filed by the appellant on 27.02.2021 disclosing income of Rs.10,40,870/-. Subsequently, based on the information that the appellant made exports of Rs.1,46,46,347/-. The Assessing Officer formed an opinion that the income got escaped assessment from tax. Accordingly, a notice u/s.148 was issued on 23.03.2024 after duly complying with the procedure laid down u/s.148A of the Act. The appellant neither complied with the notice u/s.148 nor the notice issued u/s.142(1) of the Income Tax Act, 1961. In the circumstances, the Assessing Officer had proceeded with framing the best judgment assessment vide order dated 13.02.2025 passed u/s.147 read with section 144 read with section 144B of the Income Tax Act, 1961 at a total income of Rs.22,12,577/-. While doing so, the Assessing Officer brought to tax addition of Rs.11,71,707/- by estimating income at 8% on the export turnover of Rs.1,46,46,347/-.

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 to Section 251(2) of the Act which requires the CIT(A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before him. Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act.” Unquote.

Therefore, in the light of above legal position, we are of the 8. considered opinion and deem it proper to remit the matter requires to be remanded to the file of CIT(A)/NFAC for de novo disposal of the issue on merits by passing a speaking order after allowing reasonable opportunity to the appellant, in accordance with law. All the contentions raised by the appellant are left open for consideration before the ld.CIT(Appeals).

Sd/- Sd/- (INTURI RAMA RAO) (MANU KUMAR GIRI) JUDICIAL MEMBER ACCOUNTANT MEMBER Chennai; �दनांक / Dated : 7th May, 2026 SGR, Sr.PS आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT Chennai/Madurai/Coimbatore/Salem. �वभागीय ��त�न�ध,आयकर अपील�य अ�धकरण, “ए” ब�च, 4. चे�नई/ DR, ITAT Chennai. गाड� फ़ाइल / Guard File. 5.