SEWA SAHAKARI SAMITI PARPODI,TEHSIL DHAMDA PARPODI vs. INCOME-TAX OFFICER, WARD KAWARDHA, KAWARDHA

आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM: The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, dated 14.02.2026 for the assessment year 2017-18 as per the grounds of appeal on record.

“2.3 The delay cannot be condoned in a routine or casual manner and the appellant must demonstrate that it acted with due diligence. In the present case, no compelling circumstances beyond the control of the appellant has been demonstrated. The appellant has not provided adequate justification for the delay of 58 days in filing of the appeal. In view of the above discussion, I do not agree that there is ‘sufficient and reasonable cause’ to be considered for

3 Sewa Sahakari Samiti Parpodi Vs. ITO, Ward- Kawardha (C.G.) ITA No.338/RPR/2026

condonation of delay. The application for condonation of delay is therefore rejected. Since condonation of delay is not granted, there is no need to adjudicate the case on merits.”

That the Hon’ble High Court of Bombay in the case of in the case 5. of CIT Vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bom) had categorically held that the appellate authority has to adjudicate all the grounds on merits and cannot dismiss the appeal in limine on the ground of delay or for non-prosecution. In the aforementioned case the Hon’ble High Court had observed as under:

"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 AO to make further inquiry and report the result of the same to him as found in Sec. 250 of the Act. Further, Sec. 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. Sec. 251(1)(a) and (h) 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-s. (2) of s. 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 s. 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

4 Sewa Sahakari Samiti Parpodi Vs. ITO, Ward- Kawardha (C.G.) ITA No.338/RPR/2026

dispose of the appeal on merits. In fact w.e.f. 1st June, 2001 the power of the CIT(A) to set aside the order of the AO and restore it to the AO for passing a fresh order stands withdrawn. Therefore, it would be noticed that the powers of the CIT(A) are co-terminus with that of the AO i.e. he can do all that A.O could do. Therefore, just as it is not open to the AO 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 s. 251(1)(a) and (b) and Explanation to Sec. 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.”

“7. Considering the entire facts and circumstances, in the interest of substantive justice, we allow one final opportunity to the assessee to present relevant evidence/documents before the Ld. CIT(Appeals)/NFAC explaining the reasons for condonation of delay and after going through those evidences, the Ld. CIT(Appeals)/NFAC shall specifically decide whether such delay can be condoned as per Section 249(3) of the Act

5 Sewa Sahakari Samiti Parpodi Vs. ITO, Ward- Kawardha (C.G.) ITA No.338/RPR/2026

and then decide on merits of the case in terms with Section 250(4) & (6) of the Act. Further, as per the dictate of the decision of the Hon’ble High Court of Bombay in the case of CIT Vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bom), the Ld. CIT(Appeals)/NFAC had no power to dismiss an appeal in limine on the ground of non-prosecution and the same jurisprudence transcends into the situation that the Ld. CIT(Appeals)/NFAC has no power to dismiss an appeal in limine on ground of delay only without referring and discussing the contents of the assessment order and Form 35 and its annexures. Needless to say, the Ld. CIT(Appeals)/NFAC shall afford reasonable opportunity of being heard to the assessee as per law. Accordingly, the order of the Ld. CIT(Appeals)/NFAC is set-aside. 8. As per the above terms, grounds of appeal raised by the assessee stands allowed for statistical purposes. 9. In the result, appeal of the assessee is allowed for statistical purposes.”

6 Sewa Sahakari Samiti Parpodi Vs. ITO, Ward- Kawardha (C.G.) ITA No.338/RPR/2026

Order pronounced in the open court on 15th May, 2026.

Sd/- Sd/- DR.DIPAK P. RIPOTE PARTHA SARATHI CHAUDHURY (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) रायपुर/ RAIPUR ; �दनांक / Dated : 15th May, 2026. SB, Sr. PS आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to : 1. अपीलाथ� /The Appellant. 2. ��यथ� /The Respondent. 3. The CIT(Appeals)-1, Raipur (C.G.) 4. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, रायपुर ब�च, रायपुर / DR, ITAT, Raipur Bench, ‘SMC’ Raipur.

7 Sewa Sahakari Samiti Parpodi Vs. ITO, Ward- Kawardha (C.G.) ITA No.338/RPR/2026