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Facts
The assessee's appeal before the CIT(A) was dismissed for non-prosecution as the assessee failed to comply with notices, only seeking an adjournment. The CIT(A) did not adjudicate the grounds on merits, nor did it provide a speaking order. The assessee filed an appeal before the ITAT, and though the assessee did not appear before the tribunal, the revenue conceded the CIT(A)'s order was non-speaking.
Held
The tribunal held that the CIT(A)'s order was in violation of Section 250(6) of the Income Tax Act, 1961, as it was not a speaking order and failed to decide the appeal on merits. The tribunal set aside the CIT(A)'s order and restored the matter to the CIT(A) for fresh adjudication.
Key Issues
Whether the CIT(A) erred in dismissing the appeal for non-prosecution without adjudicating on merits and without passing a speaking order, in violation of principles of natural justice and statutory provisions.
Sections Cited
144, 153C, 69A, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Hyderabad ‘A‘ Bench, Hyderabad
Before: Shri Ravish Sood & Shri Madhusudan Sawdia
ORDER Per Madhusudan Sawdia, A.M.: This appeal is filed by Shri Dinesh Kumar, (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), Hyderabad-11 (“Ld. CIT(A)”) dated 23.12.2024 for the A.Y.2021-22.
There was no appearance on behalf of the assessee at the time of hearing. No application for adjournment was also filed. Accordingly, we proceeded to dispose of the appeal ex parte qua the assessee and after hearing the Ld. DR, on the basis of material available on record.
Page 1 of 4 Dinesh Kumar 3. At the outset, we observe that there is a delay of 36 days in filing the present appeal before this Tribunal. The assessee has filed a petition for condonation of delay explaining the reasons for such delay. On perusal of the condonation petition, we find that the delay is only minor in nature and the reasons stated therein constitute sufficient cause. There is also no objection from the Revenue to the condonation of delay. Accordingly, in the interest of justice, the delay in filing the appeal is condoned and the appeal is admitted for adjudication.
The assessee has raised the following grounds of appeal: - “1. The CIT(A) erred in dismissing the appeal filed for AY 2021-22.
1.
The CIT(A) dismissed the appeal without granting any opportunity of being heard to the appellant. Hence, the Order is not in accordance with the principles of natural justice.
3. The CIT(A) dismissed the appeal without considering the adjournment petition filed by the appellant.
4. The CIT(A) erred in confirming the addition of Rs.24,28,200/- to the income of the appellant made u/s 69A of the Act.
5. The CIT(A) ought to have appreciated the fact that addition was based on some unreliable document which was not found from the premises of the appellant and without any corroborative evidence.
6. The CIT(A) ought to have appreciated the fact that the document relied by the AO for passing the assessment order is neither in the writing of the appellant or signed by the appellant nor it is found in the possession of the appellant.
7. The CIT(A) failed to provide opportunity of cross examination in respect of the statement made by M/s Rubberwala Housing and Infrastructure Limited accepting the payment of cash.
8. The CIT (A) ought to have appreciated the fact that the date of registration of the shop purchased by assessee was after the date of search proceedings.
Page 2 of 4 Dinesh Kumar 9. The CIT(A) ought to have appreciated the fact that assessee had transferred Rs.18,35,400/- to M/s RHIL through banking channels during the FY 2020-21, towards purchase consideration and no payment was made in the form of cash. 10. The Appellant may add or alter or amend or modify or substitute or delete and/or rescind all or any of the grounds of appeal at any time before or at the time of hearing of the appeal.”
5. The brief facts of the case are that, the assessee had filed an appeal before the Ld. CIT(A) against the assessment order passed by the Ld. AO for Assessment Year 2021–22 under section 144 read with section 153C of the Income Tax Act, 1961 (“the Act”) dated 12.01.2024. Before the Ld. CIT(A), the assessee failed to comply with the notices issued, except for seeking adjournment on one occasion. Owing to such non- compliance, the Ld. CIT(A) dismissed the appeal for non- prosecution.
6. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before this Tribunal. We note that even before this Tribunal, there is no appearance on behalf of the assessee, nor has any written submission been filed. However, on perusal of the impugned order passed by the Ld. CIT(A), we find that the appeal has been dismissed solely on the ground of non-prosecution, without adjudicating the grounds raised by the assessee on merits. However, as per the mandate of section 250(6) of the Income Tax Act, 1961 (“the Act”), the Ld. CIT(A) is duty-bound to dispose of the appeal by passing a speaking order, stating the points for determination, the decision thereon and the reasons for such decision. Even in cases where the assessee does not appear, the Ld. CIT(A) is required to decide the appeal on merits and cannot dismiss the same merely for non-prosecution. In the present case, the order passed by the Page 3 of 4
The Ld. DR fairly conceded that the impugned order is non-speaking and did not raise any objection to the matter being remanded to the file of the Ld. CIT(A) for fresh adjudication.
In view of the above, we deem it appropriate to set aside the impugned order and restore the matter to the file of the Ld. CIT(A) with a direction to adjudicate the appeal on merits, by passing a speaking order in accordance with section 250(6) of the Act, after providing adequate opportunity of being heard to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 04th February, 2026.
Sd/- Sd/- (RAVISH SOOD) (MADHUSUDAN SAWDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER