SUBHASH KISAN CHAUDHARI,NASHIK vs. ITO WARD 2 (1), NASHIK

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ITA 2940/PUN/2025Status: DisposedITAT Pune16 April 2026AY 2017-185 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal held that the CIT(A) is obliged to decide the appeal on merits and cannot dismiss it for non-prosecution. The CIT(A) failed to consider the grounds raised by the assessee.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed without adjudicating the grounds of appeal. The Assessing Officer had made an addition of Rs. 2,49,31,590/- based on cash deposits in the bank account after the assessee failed to reply to a notice.

What were the issues?

Whether the CIT(A) can dismiss an appeal without adjudicating the grounds raised by the assessee. Whether the CIT(A) is obliged to decide the appeal on merits.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 250,Section 251

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE

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

For Appellant: Shri Anup Ladda (Virtual)
For Respondent: Shri Ratnakar Shelake-Addl. JCIT
Hearing: 16/04/2026Pronounced: 21/04/2026

आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by assessee Mr. Subhash Kisan Chaudhari against the order u/s 250 of the Income Tax Act, 1961 for A.Y. 2017-18 passed on 16.09.2025 by Commissioner of Income Tax (Appeals) (NFAC) emanating from Assessment Order for A.Y. 2017-18 dated 14.02.2025 passed u/s 147 r.w.s. 144 of the Income Tax Act, 1961.

2.

Ld. AR at the outset submitted that Ld. CIT(A) has dismissed the appeal of the assessee without adjudicating grounds of appeal raised by

ITA No.2940/PUN/2025

assessee. Ld. AR submitted that assessee has filed elaborate submission before the CIT(A) but CIT(A) failed to consider it.

3.

Ld. DR relied on the order of AO.

4.

We have heard both the parties and perused the records.

4.1. In this case assessee claimed that he is trading in grapes and tomatoes. For A.Y. 2017-18 assessee had not filed return of income u/s 139 of the Act. The Assessing Officer had information on INSIGHT portal of Income Tax Department that assessee had deposited cash in Bank Account mentioned in the information. A.O. issued notice u/s 148A(b) but assessee failed to reply. Then AO passed an order u/s 148A(d) dated 27.2.2024. AO also issued notice u/s 148 dated 27.2.2024. AO assessed the total income at Rs. 2,49,31,590/-. Aggrieved by the assessment order assessee filed appeal before Ld. CIT(A).

4.2. In this case Ld. CIT(A) has dismissed the appeal of the assessee without adjudicating the grounds of appeal. Ld. CIT(A) has observed as under in Para 9 of the order which is re-produced here as under:-

Thus Ld. CIT(A) has not adjudicated any ground raised by assessee.

ITA No.2940/PUN/2025

5.

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.

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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.

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

6.

In these facts and circumstances of the case since CIT(A) has not adjudicated the grounds raised by the assessee, respectfully following Hon’ble Jurisdictional High Court, the order u/s 250 is set aside to CIT(A) for de-novo adjudication. Ld. CIT(A) shall provide opportunity of hearing to the assessee.

7.

In the result grounds of appeal raised by assessee are allowed for statistical purpose.

ITA No.2940/PUN/2025

Order pronounced in the open Court on 21st April, 2026.

Sd/- Sd/- (PAVAN KUMAR GADALE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पपणे / Pune; ददिधंक / Dated : 21st April, 2026/ SGR आदेशकीप्रनिनलनपअग्रेनषि / Copy of the Order forwarded to : अपऩलधर्थी / The Appellant. 1. प्रत्यर्थी / The Respondent. 2. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. नवभधगऩयप्रनिनिनर्, आयकरअपऩलऩयअनर्करण, “बऩ” बेंच, पपणे / DR, 5. ITAT, “B” Bench, Pune. गधर्ाफ़धइल / Guard File. 6. आदेशधिपसधर / BY ORDER,

// TRUE COPY // Assistant Registrar आयकरअपऩलऩयअनर्करण, पपणे/ITAT, Pune.

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