PRADEEP ANANDPRAKASH SACHDEV,AHEMDNAGAR vs. ITO, AHEMDNAGAR

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ITA 1211/PUN/2026Status: DisposedITAT Pune25 August 2026AY 2022-234 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) is obligated to decide appeals on merits and cannot dismiss them for non-prosecution. The CIT(A)'s order was set aside for de-novo adjudication.

What were the facts?

The assessee failed to file replies to notices issued by the CIT(A). Consequently, the CIT(A) dismissed the appeal for non-compliance without adjudicating the merits of the case. The assessee appealed this dismissal.

What were the issues?

Whether the CIT(A) can dismiss an appeal for non-prosecution without deciding the merits, and whether the CIT(A) has the power to set aside an order for de-novo adjudication.

Which sections of the Income-tax Act were involved?

Section 250,Section 251

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

Before: SHRI PAVAN KUMAR GADALE & SHRI Dr. DIPAK P. RIPOTE

For Appellant: Shri Bharat Shah
For Respondent: Smt. Shraddha Nichal, Addl. CIT

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi [Ld.CIT(A)], passed u/s. 250 of the Income Tax Act, 1961 („the Act‟) for AY 2022-23 on 27.11.2025, emanating from the Assessment Order u/s 143(3) r.w.s. 144B of the Act, dated 17.03.2024.

2.

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 21.08.2025, 17.10.2025 and 11.11.2025. Accordingly, the Ld. CIT(A) dismissed the appeal of the assessee for non-compliance without discussing the merits of the case. The relevant paragraphs of the Ld. CIT(A) are as under :

ITA No. 1211/PUN/2026

“5.1 By its own act, the appellant has failed to remain vigilant and did not avail the opportunity to submit its point of view/contention, as it did not respond to various notices issued. The fact that the appellant did receive the order filed the present appeal, but chose not to respond to any of the notices issued by this office clearly establish total disregard to the due process of law. Therefore, the conclusion that the appellant could not controvert the finding given by the AO on merits of the issue is inescapable. 5.2 In view of the above, I am of the considered view that no interference is called for to the impugned order passed u/s 143(3) r.w.s.144B of the Act, and accordingly, the grounds of appeal of the appellant are "Dismissed". 6. The appeal of the appellant, is accordingly dismissed.”

2.1 The Ld. CIT(A) has dismissed the appeal without adjudicating the grounds of appeal which is mandatory u/s 250(6) of the Act.

3.

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

ITA No. 1211/PUN/2026

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.

4.

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.

5.

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

6.

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

Order pronounced in the open Court on 25th August, 2026

Sd/- Sd/- (PAVAN KUMAR GADALE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/Pune; दिन ांक/Dated : 25-08-2026 Ravi Digitally signed by Ravi Kumar Ravi Kumar Kumar Date: 2026.08.25 16:15:07 +05'30'

ITA No. 1211/PUN/2026

आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. The concerned Pr. CIT, Pune 4. DR, ITAT, „B‟ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण,पुणे / ITAT, Pune

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