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Facts
The assessee's appeal against an order of the ADDL/JCIT for AY 2023-24 was dismissed in limine. The AO/CPC had taxed income under Section 115BBE at 30% instead of 15% claimed under Section 115BAB.
Held
The appellate authority has a duty to decide cases on merits, even if the party is absent. The Ld. Commissioner dismissed the appeal without considering the merits, despite issuing notices.
Key Issues
Whether the appeal was rightly dismissed in limine by the Ld. Commissioner without deciding on merits.
Sections Cited
250, 143(1), 115BBE, 115BAB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGPUR
Before: SHRI NARENDER KUMAR CHOUDHRY
This appeal has been preferred by the assessee against the order dated 03/12/2025 impugned herein passed by the ADDL/JCIT (A)–12, Delhi [in short, “Ld. Commissioner”] u/sec. 250 of the Income Tax Act, 1961 (for short, “the Act”) for the Assessment Year (for short, “AY”) 2023-24.
In the instant case, the AO/CPC vide intimation/order dated 14/05/2024 u/sec. 143(1) of the Act and taxed the income of the assessee u/sec. 115BBE of the Act @30% as against 15% as claimed by the assessee u/sec. 115BAB of the Act and, therefore, assessee being aggrieved challenged the said treatment by filing first appeal before the 2 ITA.No. 43/NAG/2025 Ld. Commissioner, who issued two notices lastly dated 27/11/2024 for giving opportunity to the assessee for making compliance on or before 03/12/2024 , however the Assessee neither made any compliance nor filed any adjournment application. Therefore, the Ld. Commissioner on the very same day i.e. 03/12/2024 itself, passed the impugned order, consequently dismissing the appeal of the Assessee in limine and without touching upon merits of the case. As the Court time and again held in various decisions that it is the bounden duty of the appellate authority to decide the case on merits, even otherwise in absence of the Party as well. Thus, this Court is inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh, suffice to say by affording a reasonable opportunity of being head to the assessee.
In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 20.06.2025.