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Facts
The assessee failed to file a return of income and did not respond to notices. The Assessing Officer made an addition under Section 144 r.w.s. 147 r.w.s 144B of the Act. The CIT(A) dismissed the appeal for non-compliance, despite providing multiple opportunities.
Held
The tribunal held that the CIT(A) cannot dismiss an appeal for non-prosecution and must decide the appeal on merits. The CIT(A)'s order was set aside for denovo adjudication.
Key Issues
Whether the CIT(A) has the power to dismiss an appeal for non-prosecution, or is obliged to decide the appeal on merits?
Sections Cited
250, 144, 148, 147, 144B, 251, 246A, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE
Before: MS.ASTHA CHANDRA & DR.DIPAK P. RIPOTE
Assessment Year: 2015-16 Rahul Arun Mandlik, V The Income Tax Officer, Sr No.34/3/2, Kashi s Ward-5(2), Pune. Vishveshewar Apartment, NT Yenpure Nagar, Dhankawadi, Pune – 411043. PAN: BMBPM1461M Appellant/ Assessee Respondent / Revenue Assessee by None Revenue by Smt.Sonal L Sonkavde – Addl.CIT(DR) Date of hearing 30/09/2025 Date of pronouncement 30/09/2025 आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This appeal filed by the Assessee against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], passed under section 250 of the Income Tax Act, 1961 for the A.Y.2015-16 dated 16.12.2024 emanating from the Assessment Order passed under section 144 of the Act, dated 27.03.2022. The Assessee has raised the following grounds of appeal :
[A] “1. The learned assessing officer has eared in law and in fact made an addition in total income of Rs 2,01,25,740/- on account of unexplained money under section 69A. 2. The learned assessing officer has eared in law and in fact made an addition in total income of Rs 3,181/- on account of absence of any explanation received from appellant. 3. The appellant craves to leave to add or alter, amend, modify the grounds of appeal
.”
2. At the outset of hearing, no one appeared on behalf of the Assessee. However, a letter written by Chartered Accountants “Tanaji Chorghe” dated 29.09.2025 was filed, requesting for an adjournment on the ground that ld.AR was busy in Tax Audit Work. However, it is noted that No Authority Letter has been filed by Chartered Accountants “Tanaji Chorghe”. Therefore, the letter dated 29.09.2025 of Chartered Accountants “Tanaji Chorghe” cannot be considered. Accordingly, we proceeded hearing ex-parte.
Submission of ld.DR : 3. The ld.Departmental Representative(ld.DR) for the Revenue relied on the order of Assessing Officer and ld.CIT(A).
Findings & Analysis : 4. We have heard ld.DR for the Revenue and perused the records. In this case, as per the assessment order, Assessee has not filed Return of Income for A.Y.2015-16. The Assessing Officer(AO) 2 [A] issued notice u/s.148 dated 31.03.2021 based on the information received by Assessing Officer regarding cash deposits of Rs.2,01,25,740/- by Assessee-Rahul Arun Mandlik in the Saving Bank Account. As per the Assessment Order, Assessee has not filed any reply to any of the notices, hence, Assessing Officer passed an order u/s.147 r.w.s. 144 r.w.s 144B of the Act, determining the income of the Assessee at Rs.2,01,28,921/-. Aggrieved by the assessment order, Assessee filed appeal before the ld.CIT(A). The ld.CIT(A)[NFAC] vide order dated 16.12.2024 dismissed the appeal of the Assessee on account of non-compliance. Ld.CIT(A)[NFAC] provided four opportunities to the Assessee, but assessee failed to file any reply. Accordingly, ld.CIT(A)[NFAC] dismissed the appeal.
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.
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 5.1 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.
In view of the above, in the interest of justice, we set-aside the order of the ld.CIT(A) to ld.CIT(A) for denovo adjudication. Ld.CIT(A) shall provide opportunity to the assessee. Assessee shall file all the necessary documents before the ld.CIT(A). Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 30 September, 2025.