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Facts
The assessee's appeal against the CIT(A)'s order arose from an assessment order under Section 143(3). The CIT(A) dismissed the assessee's appeal in limine due to non-prosecution, stating that notices were not complied with. The assessee claimed the notices were sent to an old email ID and adequate opportunity was not provided by the AO.
Held
The Tribunal held that the CIT(A) erred in dismissing the appeal without adjudicating on merits, as Section 250(6) mandates a speaking order with reasons. The CIT(A) also failed to follow the principles laid down in various judicial pronouncements regarding reasoned orders and the inability to dismiss appeals solely for non-prosecution.
Key Issues
Whether the CIT(A) correctly dismissed the appeal for non-prosecution without considering the merits of the case and providing a speaking order as required by law.
Sections Cited
250, 143(3), 68, 250(6), 251(1), 246A, 46A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA
Before: SH. GEORGE MATHAN & SH. RAKESH MISHRA
order
: 07-July-2025 ORDER
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2012-13 dated 03.05.2024, which has been passed against the order u/s 143(3) of the Act, dated 12.03.2015.
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