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Facts
The assessee filed a return declaring income at Rs.3,55,120/-. The Assessing Officer completed the assessment ex-parte under Section 144, making an addition of Rs.62,79,400/- under Section 69 read with Section 115BBE, due to non-compliance by the assessee.
Held
The Tribunal held that the CIT(A) erred in dismissing the appeal in limine without discussing the merits, as Section 250(6) mandates a speaking order. The Tribunal set aside the CIT(A)'s order and remitted the matter back for fresh adjudication.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte without considering the merits, and whether the assessee should be granted another opportunity for adjudication.
Sections Cited
147, 144, 144B, 69, 115BBE, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2016-17 is directed against the order dated 26.06.2025 framed by National Faceless Appeal Centre, Delhi (NFAC) arising out of Assessment Order dated 06.03.2025 passed u/s. 147 r.w.s.144 r.w.s.144B of the Income Tax Act, 1961 (in short ‘the Act’).
We have heard the rival submissions and perused the record placed before us. We observe that the assessee is an individual and filed the return of income for A.Y. 2016-17 declaring total income at Rs.3,55,120/-. Based on the information that assessee has made investment with M/s. Shri Renuka Mata Multi State Urban Coop. Credit Society Ltd. at Rs.62,79,400/-, case selected for scrutiny and assessment proceedings u/s.147 of the Act were carried out. There was no compliance from the side of assessee to the various statutory notices served upon the assessee. In the absence of any compliance/reply to explain the financial transaction in question, ld. Assessing Officer completed the assessment u/s.144 of the Act making addition of Rs.62,79,400/- u/s.69 r.w.s.115BBE of the Act. Assessee preferred appeal before ld.CIT(A) but failed to make any appearance on the given dates of hearing. Now the assessee is in appeal before us challenging the impugned exparte order passed by ld.CIT(A) raising legal issues as well as the issues on merit.
On perusal of the orders of the authorities below, it is clear that assessee has not participated in the proceedings before the authorities which resulted into passing of exparte orders. Ld.CIT(A) dismissed the appeal of the assessee in limine without discussing anything on merits of the case and merely countenanced the view point of the Assessing Officer. Ld.CIT(A) in view of the mandatory provisions of section 250(6) is duty bound to identify the issues to be adjudicated in such appeal and state in clear terms the decision arrived thereon and to provide the basis in arriving such conclusion. We note that the statute clearly provided the manner, mechanism and the guidelines for adjudication of first appeal. Ld.CIT(A) failed to adhere to the said guidelines. It is trite law that if a statute provides for a thing to be done in a particular manner, then it has to be done in that manner and in no other manner’
Before us, ld. Counsel for the assessee submitted that due to reasons beyond control of the assessee, there was non-compliance before the lower authorities. Assessee has a prima-facie case and possesses all the details/evidences to substantiate the Investment made with M/s. Shri Renuka Mata Multi State Urban Coop. Credit Society Ltd. He therefore made a prayer to afford one more opportunity to the assessee setting aside the issues raised in the instant appeal to the file of ld.CIT(A).
Considering the totality of the facts and circumstance of the case and in the interest of justice, we deem it fit to grant an opportunity to the assessee. In view thereof, without dwelling into merits of the case, all the issues raised in the instant appeal are remitted back to the file of ld.CIT(A)/NFAC with a direction to adjudicate the same denovo in accordance with law and pass a speaking order in terms of section 250(6) of the Act. Impugned order is set aside and grounds of appeal raised by the assessee are allowed for statistical purposes. Assessee is also directed to remain vigilant and make satisfactory compliance to the notice(s) of hearing issued by ld.CIT(A) and should refrain from taking adjournments unless otherwise required for reasonable cause.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 13th day of March, 2026.