TARDIGRADE HEALTHTECH PRIVATE LIMITED,LUCKNOW -UP vs. DCIT, ACIT ,NFAC, NFAC DELHI

The facts of the case, in brief, are that the assessee is a startup company and filed its return of income on 31/10/2018 declaring total loss of Rs.87,11,589/-. The Assessing Officer completed the assessment and passed order under section 143(3) read with section 144B of the Income Tax Act, 1961 (“the Act” for short) and determined the total income of the assessee at Rs.2,19,79,777/- and made addition of Rs.2,19,79,777/- as unexplained cash credits u/s 68 of the Act. Being aggrieved, the assessee carried the matter in appeal before learned CIT(A) who has dismissed the appeal of the assessee. Being aggrieved again, the assessee is in appeal before the Income Tax Appellate Tribunal.

At the time of hearing, the learned Authorized Representative for the assessee submitted that the Assessing Officer as well as learned CIT(A) have passed ex-parte order without affording sufficient time and opportunity to the assessee. He further submitted that the learned CIT(A) did not pass speaking order on merits of various grounds of appeal. He further submitted that the issues in dispute should be restored back to the file of the learned CIT(A) with the direction to pass speaking order on merits on all the grounds of appeal after providing reasonable opportunity to the assessee. Learned D.R. for Revenue expressed no objection to this. We are of the considered view, in view of section 250(6) of the I. T. Act, that the learned CIT(A) has statutory duty to pass a speaking order on merits on the various grounds of appeal filed by the assessee. Having regard to the same, and in view of the submissions made by the Learned A. R. for the assessee, we set aside the impugned appellate order dated 03/02/2024 to the file of learned CIT(A) with the direction to pass de novo order on merits in accordance with law after providing reasonable opportunity of being heard to the assessee.