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Facts
The assessee challenged additions of Rs.13,28,835/- from securities sale and Rs.75,000/- for disallowance of provisions. The Assessing Officer made these additions via a reassessment order. The assessee, despite opportunities, failed to comply with notices, leading the CIT(A) to dismiss the appeal.
Held
The Tribunal observed that the CIT(A) dismissed the appeal in limine for non-prosecution without deciding on merits. This procedure favored the assessee for a remand.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal without adjudicating on merits, and if the case should be remanded for fresh decision.
Sections Cited
250, 147, 144B
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Income Tax Appellate Tribunal, NAGPUR BENCH “SMC”, NAGPUR
Before: SHRI NARENDER KUMAR CHOUDHRY
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 31.12.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2019-20.
In the instant case, the Assessing Officer (AO) vide reassessment order dated 01.01.2024 u/s 147 r.w.s. 144B of the Act has made the additions of Rs.13,28,835/- on account of income from sale transactions of securities and Rs.75,000/- being disallowance on account of provisions debited to profit & loss account.
The Assessee though challenged the aforesaid additions, /disallowances by filing first appeal before the Ld. Commissioner, however, despite of affording various opportunities except seeking adjournment, eventually made any compliance. Therefore, in the constrained circumstances the Ld. Commissioner dismissed the appeal of the Assessee, affirming the aforesaid additions/disallowances.
The Assessee, being aggrieved, challenged the impugned order.
Heard the parties and perused the material available on record. Though this Court while passing the Zimni (Daily) order shown its inclination to remand the instant case to the file of the Ld. Commissioner but subject to deposit of Rs.22,000/-, however, at this stage while passing the instant order on merit and in detail, this Court observes that the Ld. Commissioner though is duty bound to pass the impugned order on merit even in the absence of Assessee and/or non-filing of submissions and documents but still the Ld. Commissioner in this case decided the appeal of the Assessee in limine and/or for non-prosecution and without touching upon the merits of the case, thus this fact favors the case of the Assessee for remanding without any cost, to the file of the Ld. Commissioner for decision afresh.
Thus, considering the aforesaid peculiar facts and circumstances in totality for just and proper decision of the case and substantial justice, this Court is inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh, without any cost. Thus, the case is accordingly remanded to the file of Ld. Commissioner for decision afresh in the said terms.
The Assessee is also directed to comply with the notices to be issued by the Ld. Commissioner and file the relevant submissions and documents, which would be essentially required for proper and just decision of the case. In case of subsequent default, the Assessee shall not be entitled for any leniency.
In the result, the Assessee’s appeal is allowed for statistical purposes.
Order is pronounced on dated 29th August, 2025, as per section 34{5} of the Income-Tax (Appellate Tribunal) Rules, 1963.