MAHESH KUMAR BHAGVAN DASS SINGLA,MOHALI vs. DCIT,CIRCLE 1(1), TRIVANDRUM

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ITA 703/COCH/2025Status: DisposedITAT Cochin10 November 2025AY 2010-11Bench: SHRI INTURI RAMA RAO (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the CIT(A) is duty-bound to dispose of an appeal on merits, even ex-parte, as per Section 250(6) of the Act. Citing precedent, the Tribunal remanded the matter back to the CIT(A) with directions to dispose of the appeal de novo on merits after providing the assessee a reasonable opportunity of hearing.

What were the facts?

For AY 2010-11, the assessee filed a return disclosing income of Rs. 22,05,090/-, but the AO completed the assessment under Section 143(3) at Rs. 43,65,700/-, adding Rs. 30,93,297/- as short-term capital gain. The assessee's appeal against this addition was dismissed in limine by the CIT(A) for non-prosecution without addressing the merits.

What were the issues?

Whether the CIT(A) can dismiss an appeal in limine for non-prosecution without deciding on its merits, and if such an appeal should be remanded for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250(6)

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Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM

For Appellant: Shri Nikhil Garg, CA
For Respondent: Smt. Leena Lal, Sr. D.R
Hearing: 03.11.2025Pronounced: 10.11.2025

Assessment Year: 2010-11 Mahesh Kumar Bhagavan Dass Singla .......... Appellant D1002, Falcon View, Secotr 6, Mohali 140308 [PAN: AJZPS6905Q] vs. DCIT, Circle-(1)(1), Thiruvananthapuram .......... Respondent Assessee by: Shri Nikhil Garg, CA Revenue by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 03.11.2025 Date of Pronouncement: 10.11.2025 O R D E R

This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-2, Lucknow [CIT(A)] dated 08.08.2025 for Assessment Year (AY) 2010-11.

2.

Brief facts of the case are that the appellant is an individual. The return of income for AY 2010-11 was filed on 29.07.2011 disclosing income of Rs. 22,05,090/-. Against the said return of income, the assessment was completed by the ACIT, Circle 2(1), Thiruvananthapuram (hereinafter called "the AO") vide order dated 27.03.2013 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 43,65,700/-. While doing so, the AO made addition of short term capital gain of Rs. 30,93,297/-.

3.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal in limine for non prosecution without entering into the merits of the issues.

4.

Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.

5.

I find that the learned CIT(A) dismissed the appeal in limine for non prosecution. As contemplated u/s. 250(6) of the Act the CIT(A) is required to frame points of determination followed by a detailed discussion thereupon before passing the order. It is the settled position of law that the CIT(A), even while disposing of the appeal exparte, is duty bound to dispose of the appeal on merits. Reliance in this regard can be placed on the decision of the Hon'ble Bombay High Court in the case of PCIT vs. Premkumar Arjundas Luthra 279 CTR 614. Therefore, in the light of the above legal position I am of the considered view that the matter requires to be remanded to the file of the CIT(A) with the direction to dispose of the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee.

Order pronounced in the open court on 10th November, 2025.

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