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Facts
The assessee filed an appeal against the order of the Ld. CIT(A). The Ld. CIT(A) had provided multiple opportunities for the assessee to comply and file submissions, but the assessee failed to do so. Consequently, the Ld. CIT(A) dismissed the appeal ex-parte and also decided it on merits.
Held
The Tribunal held that if an appeal is dismissed for non-prosecution due to the assessee's non-compliance, the Ld. CIT(A) should not decide the appeal on merits. The Tribunal set aside the order and remanded the matter back to the Ld. CIT(A) for a fresh decision after giving the assessee a reasonable opportunity of hearing.
Key Issues
Whether the Ld. CIT(A) was justified in deciding the appeal on merits after dismissing it for non-prosecution due to the assessee's failure to comply with notices and file submissions.
Sections Cited
250 of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’: NEW DELHI
O R D E R
PER MANISH AGARWAL, AM:
This appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [‘Ld. CIT(A)’ in short], in Appeal No. CIT(A), Delhi-5/10216/2019-20 dated 13.08.2025 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’ in short) for A.Y. 2017-18.
Heard both the parties and perused the material available on record. From the perusal of the order of Ld. CIT(A), it is seen that Ld. CIT(A) has provided three opportunities however, assessee has failed to comply and no submission was filed, therefore, the Ld. CIT(A) proceeded to dismissed the appeal of the assessee exparte. However, ld. CIT(A) further decided the appeal of the assessee on the merits also.
Krishna Strategic Services Pvt. Ltd. vs. ACIT 3. Once a view is taken that since the assessee has not complied with the notices issued and had not filed any submission and appeal is dismissed for want of non- prosecution, the Ld. CIT(A) should not decide the appeal on merits. Looking to entirety of the facts and in the interest of justice, we set aside the order of the Ld. CIT(A) and remand the same to the file of CIT(A) with the direction to decide the appeal afresh after providing reasonable opportunity of hearing to the assessee. The assessee is also directed to participate and file necessary details before the Ld. CIT(A) in support of the grounds of appeal taken. In case assessee has failed to do so, the Ld. CIT(A) is free to take decision on the basis of material available on record as per law. With these directions, all sthe grounds of appeal are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes Order is pronounced in the Open Court 13. 02. 2026.