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Facts
The assessee, an individual, filed an appeal against an order that dismissed their previous appeal due to non-compliance. The current appeal was filed with a delay of 252 days, which was condoned by the tribunal due to sufficient reasons provided in an affidavit.
Held
The tribunal found that both the assessment order and the CIT(A)'s order were passed without considering the assessee's case on merits. In the interest of natural justice, the matter was remanded back to the Assessing Officer for fresh consideration.
Key Issues
Whether the lower authorities correctly adjudicated the case on merits, and if not, whether the assessee should be given another opportunity to present their case.
Sections Cited
250, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH KOLKATA
Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey
order
: February 18, 2026 ORDER
Per Pradip Kumar Choubey, Judicial Member:
This appeal filed by the assessee is directed against the order dated 12.08.2024 of the NFAC, Delhi passed u/s 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2017– 18.
The appeal has been filed by the assessee with a delay of 252 days and the assessee has filed an affidavit for condonation of the delay. After going over the said affidavit, we find sufficient reasons behind the delay and consequently, the delay in filing the appeal is hereby condoned and we proceed to dispose of the appeal on merits.
Brief facts of the case are that the assessee is an individual and filed Income Tax Return for the year under consideration declaring total Sunil Kumar Gupta income of Rs.3,79,690/-. In this case, assessment order u/s 144 has been passed adding an amount of Rs.55,15,100/- in respect of Rs.1,09,01,892/- including cash deposits of Rs.17,13,350/- was deposited by the assessee during the demonetization period.
Aggrieved by the said order, the assessee filed an appeal before the CIT(A) wherein the ld. CIT(A) dismissed the appeal of the assessee due to non-compliance.
Aggrieved and dissatisfied, the assessee is in appeal before us. At the time of hearing, the Ld. AR submits that the assessee is a ‘Sikkimese’ and his total income is exempt for taxation vide decision of Hon’ble Supreme Court. The ld. AR further submits that both the orders of the lower authorities have been passed without considering the case of the assessee on merits. The Ld. AR therefore, prayed for one more opportunity to substantiate the case before the authorities below.
The Ld. DR did not make any objection to the above proposal of the ld. AR.
We have considered the submissions of the counsels of the respective parties and perused the material available on record. We find that the assessee filed an affidavit categorically stating that the assessee is a ‘Sikkimese’ and his total income is exempt for taxation vide decision of Hon’ble Supreme Court. We find that the assessment order was passed u/s 144 of the Act and the ld. CIT(A) also passed an ex party order which is devoid of merits. Under the circumstances, in the interest of natural justice, we deem it appropriate to remand this matter back to the file of Assessing Officer for fresh consideration with a direction to pass a speaking order after considering documentary evidences and Sunil Kumar Gupta affording sufficient opportunity to the assessee of being heard. The assessee is directed to fully cooperate in the remand proceedings.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Kolkata, the 18th February, 2026.