SHIWALYA SPINNING AND WEAVING MILLS PRIVATE LIMITED,LUDHIANA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1,, LUDHIANA

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ITA 1208/CHANDI/2024Status: DisposedITAT Chandigarh11 November 2025AY 2017-18Bench: SHRI RAJPAL YADAV (Vice President), SHRI KRINWANT SAHAY (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) had dismissed the appeal for non-prosecution without discussing the merits. Although the assessee was delayed, the Tribunal decided to condone the delay and remand the matter for fresh adjudication.

What were the facts?

The assessee filed an appeal against the order of the CIT(A) who dismissed the appeal for non-prosecution. The assessee contended that they did not receive notices for hearings and thus could not represent their case.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal for non-prosecution without considering the merits, and whether the delay in filing the appeal should be condoned.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘B’, CHANDIGARH

Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY

For Appellant: CA राजव क ओर से/

Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the assessee against the order dated 25.01.2024 of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi for A.Y. 2017-18. 2 1208-c-2024- Shiwalaya Spinning and Weaving Mills Private Limited, Ludhiana

2.

Grounds of appeal are as under:

1.

1. That order passed u/s 250 of the Income Tax Act, 1961 by the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi is against law and facts on the file in as much as he was not justified to uphold the disallowances made at Rs. 31,43,015/-out of the total expenses claimed under the head Machinery Repair and Maintenance Spares consumed on adhoc basis.

2. That Learned CIT(A) was further not justified to arbitrarily pass the appellate order ex-parte.

3.

The Registry has pointed out a delay of 258 days in filing of the appeal for which an application along with Affidavit for condonation of delay has been filed by the Counsel of the Assessee, which reads as under:-

3 1208-c-2024- Shiwalaya Spinning and Weaving Mills Private Limited, Ludhiana 4 1208-c-2024- Shiwalaya Spinning and Weaving Mills Private Limited, Ludhiana 5 1208-c-2024- Shiwalaya Spinning and Weaving Mills Private Limited, Ludhiana

4.

On the issue of condonation of delay, the ld. DR argued that the matter may be decided on merit.

5.

We have considered the issue brought on record in the form of an Affidavit by the ld. Counsel for the Assessee and we think it fit to condone the delay.

6.

The ld. Counsel for the Assessee argued the case on merits. Per contra, ld. DR relied on the order of the lower authorities.

7.

We find that the Ld. CIT(A) has dismissed the appeal for non-prosecution. From the record is seen that last notice u/s 250 was issued by giving last opportunity to the appellant to represent the case by furnishing details, documents, written submissions in support of the grounds of appeal. The text of the last opportunity provided to the Assessee by the Ld. CIT(A) is reproduced as under:

Notices u/s 250 of the Income Tax Act have been issued on 16.03.2020, 13.01.2021, 07.11.2022, 16.08.2023, 04.09.2023, 17.10.2023, and 6 1208-c-2024- Shiwalaya Spinning and Weaving Mills Private Limited, Ludhiana 02.11.2023, but out above mentioned 07 notices none of them has been complied with. It shows that the appellant is deliberately ignoring the notices as it has nothing to say in support of the present appeal. However, in the interest of natural justice you are being provided last opportunity to represent your case before this appellate authority on the date as mentioned in this notice. Please note that if you fail to respond this notice, it may be presumed that you have nothing to say in support of your appeal and accordingly the appeal may be decided based on material on record.

8. The CIT(A) has further mentioned in his order that the appellant has ignored even the last opportunity provided to substantiate the appeal under reference. During the assessment proceedings, the appellant did not respond properly to the notices and questionnaires issued by Id. AO. Ultimately, Id. AO was compelled to pass the order u/s 143(3) of the Income Tax Act, 1961 on the basis of information available on record. It showed that the appellant assessee was not interested in representing its case and it has nothing to say on the merit of the case. Therefore, the appeal of the appellant was dismissed without 7 1208-c-2024- Shiwalaya Spinning and Weaving Mills Private Limited, Ludhiana any discussion on the merits of the case and as such, the appeal of the appellant was not allowed by the Ld. CIT(A).

9. We have considered the assessment order passed by the Assessing Officer and the appellate order passed by the Ld. CIT(A). From the record, it is clear that the Assessee did not comply any notices issued by the ld. CIT(A) and, therefore, the CIT(A) has dismissed the appeal for non- prosecution. Though, the Assessee filed written submissions before the AO but that was also at the fag end of the year. The Assessing Officer had issued many notices as discussed by the Ld. CIT(A) in his order but they were hardly complied with by the Assessee even before the Assessing Officer. In our opinion, the Ld. CIT(A) should have given his findings on merit on the basis of material available on record but that he has not done. Therefore, in the fitness of things and for the purpose of providing natural justice to the Assessee, we are inclined to remand this matter to the file of the CIT(A) for adjudication afresh.

8 1208-c-2024- Shiwalaya Spinning and Weaving Mills Private Limited, Ludhiana

10.

Accordingly, the case is remanded back to the file of the Ld. CIT(A) for adjudication afresh on merit, by considering the submissions of the Assessee and the relevant material available on record on affording due and adequate opportunity of hearing to the Assessee in accordance with law, Needless to say, that the CIT(A) shall afford due, reasonable and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee.

13.

In the result, Assessee’s appeal is allowed for Statistical Purposes. Order pronounced on 11.11.2025 ( RAJPAL YADAV ) Accountant Member “आर.के.”

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