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Facts
The assessee's appeals for Assessment Years 2018-19 to 2020-21 were dismissed ex-parte by the Ld. CIT(Appeals)/NFAC due to non-compliance. The assessee subsequently filed appeals before the tribunal, which were time-barred by 41, 46, and 60 days, attributing the delay to not regularly checking emails and belatedly discovering the orders.
Held
The tribunal condoned the delay, finding it circumstantial and not mala fide. It held that the CIT(A)/NFAC has a statutory obligation under Sections 251(1)(a) and (b) read with the Explanation to Section 251(2) of the Income Tax Act to dispose of appeals on merits and cannot summarily dismiss them for non-prosecution. Citing judicial precedent, the tribunal set aside the ex-parte orders and remanded the matters back to the CIT(A)/NFAC for de-novo adjudication on merits, directing the assessee to comply with future hearing notices.
Key Issues
1. Whether the delay in filing appeals before the tribunal should be condoned. 2. Whether the CIT(A)/NFAC can dismiss an appeal for non-prosecution without adjudicating on merits.
Sections Cited
Section 251(1)(a), Section 251(1)(b), Section 251(2) Explanation, Section 250(4), Section 250(6), Section 246A
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Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR
Before: SHRI PARTHA SARATHI CHAUDHURY & SHRI G. D. PADMAHSHALI
आदेश / ORDER PER BENCH: The captioned appeals preferred by the assessee emanates from the respective orders of the Ld.CIT(Appeals)/NFAC, dated 26.03.2025 and 11.03.2025 for the assessment years 2018-19 to 2020-21 as per the grounds of appeal on record.
At the time of hearing none appeared for the assessee. However, an adjournment application has been filed which is rejected. The matters were heard after recording the submissions of the Ld. CIT-DR and on examination of the material available on record.
At the very outset, it is noted that the captioned appeals are time barred by 41, 46 & 60 days, respectively. Elaborating the reasons leading to the impugned delay, the assessee has filed condonation petition a/w. affidavit dated 08.08.2025. For the sake of clarity, the relevant contents of the affidavit filed by the assessee in for A.Y.2018- 19 are extracted as follows: “4. That later on, on or around 01.07.2025 when I checked status of appeal from the income tax portal and thereupon the said order was located which was already passed.
5. That then I contacted Advocate Subash Agarwal of 1, Gibson Lane, Kolkata 700069 for filing an appeal before the Hon'ble Tribunal and sent him all the relevant documents.
That the office of the said counsel prepared the appeal and finally filed on 10.07.2025 with a delay of around 40 days.
7. That I could not respond to the notices of hearing issued by the Ld. CIT(A) since the notices were received in email and I am not in the habit of accessing emails.
8. I give an undertaking that proper compliance shall be made from our end in case the matter is restored back to the file of lower authorities.”
As the contents of the affidavit regarding condonation of delay are similarly worded for remaining appeals i.e. & A.Y.2019-20 & 2020-2021, therefore, for the sake of brevity, the same are only referred to and not being extracted.
The Ld. CIT-DR conceded the contents of the “affidavit” and submitted very fairly that in the given state of affairs there are several assessees who are still not in sync with the technical developments in so far as the working of the department is concerned.
Considering the aforesaid facts, we are of the considered view that as per reasons given in the affidavit, the genuineness of the difficulties faced by many assessees that has been brought on record and also there is no evidence regarding any deliberate or malafide conduct of the assessee as regards the delay involved in filing of the present appeal before the Tribunal and whatever delay has been caused, was absolutely circumstantial beyond any direct control of bonafide assessee. In so far the delay is concerned, taking guidance from the judicial pronouncements viz. (i) Vidya Shankar Jaiswal Vs. ITO, Ward-2, Ambikapur, Civil Appeal Nos……………../2025 [Special Leave Petition (Civil) Nos. 26310- 26311/2024, dated 31.01.2025, (ii) Jagdish Prasad Singhania Vs. Additional Commissioner of Income Tax (TDS), Raipur (C.G.), TAX Case No.17/2025, dated 24.02.2025, and (iii) Inder Singh Vs. the State of Madhya Pradesh, Civil Appeal No…………/2025, Special Leave Petition (Civil) No.6145 of 2024, dated 21st March, 2025, we condone the delay of 41, 46 & 60 days, respectively involved in the captioned appeals.
6. At the very outset, it is noted that as per Para 4 of the impugned order, the Ld.CIT(Appeals)/NFAC vide an ex-parte order had dismissed the appeal of the assessee due to non-compliance by the assessee. For the sake of clarity, the Para 4 of the Ld.CIT(Appeals)/NFAC’s order in for A.Y.2018-19 is culled out as follows: “4. The appeal was fixed for hearing on 02.01.2025 vide this office notice dated 26.12.2024. When none attended nor any request for adjournment were received against above notice. Again, the appeal was fixed for final opportunity is accorded notice u/s.250 again issued vide dt. 08.01.2025 and the appeal was fixed for hearing on 15.01.2025. When none attended nor any request for adjournment were received against above notice. Again, the appeal was fixed for final opportunity is accorded notice u/s.250 again issued vide dt. 10.03.2025 and the appeal was fixed for hearing on 17.03.2025. When none attended nor any request for adjournment were received against above notice. It is quite evident from the chronology of event that despite several opportunities being granted from time to time, there has been absolutely no compliance on part of the appellant to give detailed explanation regarding ground of appeal taken for the year under consideration. This clearly shows that the appellant is not keen to pursue the above-mentioned appeal.”
In so far the appeals filed by the assessee in & 433/RPR/2025 for A.Ys. 2019-20 & 2020-21, similarly it is evident from Para 4 of the respective orders of the Ld. CIT(Appeals)/NFAC that since there was no compliance by the assessee, therefore, the Ld. CIT(Appeals)/NFAC dismissed the appeal vide an ex-parte order. For the sake of brevity, the same are only referred to and not being extracted.
The Ld. CIT-DR has fairly conceded that the matter may be adjudicated denovo on merits before the first appellate authority providing one final opportunity to the assessee.
We have carefully considered the contents in the documents/material available on record. As per the aforesaid examination of the entire spectrum of the matter in the interest of natural justice, we deem it fit and proper to provide one final opportunity to the assessee to represent his case on merits before the Ld. CIT(Appeals)/NFAC.
On a perusal of the order of the Ld.CIT(Appeals)/NFAC, it is observed that the Ld.CIT(Appeals)/NFAC dismissed the appeal of the assessee in limine for non-compliance without dealing with the merits of the case. In our considered view, once an appeal is preferred before the CIT(Appeals), it becomes obligatory on his part to dispose off the same on merit and it is not open for him to summarily dismiss the appeal on account of non-prosecution of the same by the assessee. In fact, a perusal of Sec.251(1)(a) and (b), as well as the “Explanation” to Sec.251(2) of the Act reveals that the CIT(Appeals)/NFAC remains under a statutory obligation to apply his mind to all the issues which arises from the impugned order before him. As per the mandate of law the CIT(Appeals)/NFAC is not vested with any power to summarily dismiss the appeal for non-prosecution. The aforesaid view is fortified by the judgment of the Hon'ble High Court of Bombay in the case of CIT Vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bom). In the aforementioned case the Hon’ble High Court had observed as under:
"8. From the aforesaid provisions, it is very clear once an appeal is preferred before the CIT(A), then in disposing of the appeal, he is obliged to make such further inquiry that he thinks fit or direct the AO to make further inquiry and report the result of the same to him as found in Sec. 250 of the Act. Further, Sec. 250(6) of the Act obliges the CIT(A) to dispose of an appeal in writing after stating the points for determination and then render a decision on each of the points which arise for consideration with reasons in support. Sec. 251(1)(a) and (h) of the Act provide that while disposing of appeal the CIT(A) would have the power to confirm, reduce, enhance or annul an assessment and/or penalty. Besides Explanation to sub-s. (2) of s. 251 of the Act also makes it clear that while considering the appeal, the CIT(A) would be entitled to consider and decide any issue arising in the proceedings before him in appeal filed for its consideration, even if the issue is not raised by the appellant in its appeal before the CIT(A). Thus once an assessee files an appeal under s. 246A of the Act, it is not open to him as of right to withdraw or not press the appeal. In fact the CIT(A) is obliged to dispose of the appeal on merits. In fact w.e.f. 1st June, 2001 the power of the CIT(A) to set aside the order of the AO and restore it to the AO for passing a fresh order stands withdrawn. Therefore, it would be noticed that the powers of the CIT(A) are co-terminus with that of the AO i.e. he can do all that A.O could do. Therefore, just as it is not open to the AO to not complete the assessment by allowing the assessee to withdraw its return of income, it is not open to the assessee in appeal to withdraw and/or the CIT(A) to dismiss the appeal on account of non-prosecution of the appeal by the assessee. This is amply clear from the s. 251(1)(a) and (b) and Explanation to Sec. 251(2) of the Act which requires the CIT(A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before him. Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act.”
Respectfully following the aforesaid order, we set-aside the respective orders of the Ld. CIT(Appeals)/NFAC and remand the matters back to its file for denovo adjudication while complying with the principles of natural justice as per similar terms. At the same time, it is directed that this being the final opportunity, the assessee shall duly comply with the hearing notices from the Ld.CIT(Appeals)/NFAC. The Ld.CIT(Appeal)/NFAC shall accordingly pass order in terms with Section 250(4) & (6) of the Act.
As per the aforesaid terms, the grounds of appeal raised by the assessee stands allowed for statistical purposes.
In the result, all the captioned appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 17th day of September, 2025.