VISHAL ASSOCIATES,KANPUR vs. THE INCOME TAX OFFICER, WARD-1(2)(4), KANPUR

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ITA 641/LKW/2025Status: DisposedITAT Lucknow13 November 2025AY 2018-19Bench: SHRI ANADEE NATH MISSHRA (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the CIT(A) dismissed the appeal for non-prosecution without deciding on merits, which violates the statutory duty to pass a speaking order. The matter was restored back to the CIT(A) for a de novo adjudication on merits.

What were the facts?

The assessee filed its return of income and the Assessing Officer determined a higher total income with an addition under section 40A(3). The assessee appealed to the CIT(A), who dismissed the appeal for non-prosecution without passing a speaking order on merits.

What were the issues?

Whether the CIT(A) can dismiss an appeal for non-prosecution without deciding on merits and passing a speaking order as per statutory duty.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 143(3A),Section 143(3B),Section 40A(3),Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “SMC”, LUCKNOW

Before: SHRI ANADEE NATH MISSHRA

For Appellant: Shri Swaran Singh, C.A

2018-19 against impugned appellate order dated 26/08/2025 (DIN & Order No.ITBA/NFAC/S/250/2025- 26/1080008678(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].

(B) The facts of the case, in brief, are that in this case, the assessee filed its return of income on 31/10/2018 declaring total income at Rs.94,460/-. The Assessing Officer completed the assessment and passed assessment order under section 143(3) read with section 143(3A)/143(3B) of the Act and determined the total income of the assessee at Rs.29,07,370/- and made addition of Rs.28,09,711/- under section 40A(3) of the Act. Being aggrieved, the assessee carried the matter in appeal before the learned CIT(A), who has dismissed the appeal of the assessee for non-prosecution.

Being further aggrieved, the assessee is in appeal before the Income Tax Appellate Tribunal.

(C) Both sides have been heard. Materials on record have been perused. On perusal of records, it is seen that the learned CIT(A) has dismissed the appeal of the assessee for non-prosecution and has not decided the appeal of the assessee on the merits and has not passed a speaking order. Under section 250(6) of the I. T. Act, the learned CIT(A) has statutory duty to pass a speaking order on merits on the various grounds of appeal filed by the assessee. The learned A.R. for the assessee and learned CIT, D.R., both were in agreement at the time of hearing, that the matter in dispute may be restored back to the learned CIT(A) for adjudication of assessee’s grounds of appeal on merits through a speaking order. Having regard to the same, the impugned appellate order dated 26/08/2025 of learned CIT(A) is set aside and issues in dispute are restored back to the file of learned CIT(A) with the direction to pass de novo order in accordance with law after providing reasonable opportunity of being heard to the assessee; in conscious compliance of section 250(6) of the I. T. Act. (D) In the result, the appeal is allowed for statistical purposes.

(Order pronounced in the open court on 13/11/2025)

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