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Facts
The assessee's appeal was preferred against an ex-parte order passed by the Ld. Commissioner due to non-compliance with notices. The assessee admitted fault in an affidavit but stated the order was not passed on merit.
Held
The Tribunal held that it is the duty of the Ld. Commissioner to decide appeals on merit, regardless of assessee's compliance. Since the Ld. Commissioner failed to do so, the case is remanded for a fresh decision after providing a reasonable opportunity of being heard.
Key Issues
Whether the Ld. Commissioner erred in passing an ex-parte order without deciding the appeal on merit?
Sections Cited
250 of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, NAGPUR BENCH : NAGPUR
Before: SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL SHRI K.M. ROY
I.T.A.No.202/NAG/2025 (Assessment Year 2020-21) Berar Finance Limited, DCIT, Circle-1, Nagpur. 3rd Floor, Avinisha Tower, Dhantoli, Patwardhan vs. Ground Maharashtra. PAN : AAACB 5861 B (Appellant) (Respondent) For Assessee : Shri Suren Duragkar, CA For Revenue : Shri Anand Nagrale, Sr. DR Date of Hearing : 16.06.2025 Date of Pronouncement : 16.06.2025 ORDER PER NARENDER KUMAR CHOUDHRY, JM:
This appeal has been preferred by the assessee against the order dated 11/02/2025 impugned herein passed by the Ld. Commissioner of Income Tax (Appeals)/NFAC, 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”) 2020- 21.
2 ITA.No.202/NAG/2025 2. The assessee by filing duly sworn affidavit has honestly admitted his fault for non–compliance to the notices issued by the Ld. Commissioner, which resulted into passing the impugned order as ex–parte, but not on merit. Thus, considering the peculiar facts and circumstances of the case in totality, as it is the bounden duty of the Ld. Commissioner to decide the appeal on merit, irrespective of the fact whether the Assessee made any compliance or not, which in the instant appeal the Ld. Commissioner failed to do so. Thus, the case is remanded to the file of Ld. Commissioner for decision afresh, suffice to say, by providing reasonable opportunity of being heard to the assessee.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 16.06.2025.
Sd/- Sd/- (K.M. Roy) (Narender Kumar Choudhry) Accountant Member Judicial Member Dated 16th June, 2025 vr/-
3 ITA.No.202/NAG/2025 Copy to