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Facts
The assessee filed an appeal against the order of the Ld. CIT(A) for Assessment Year 2017-18. The Ld. CIT(A) had dismissed the assessee's appeal in limine without deciding the issue on merits, citing the assessee's failure to pursue the appeal despite multiple opportunities. The assessee sought a remand, stating there were reasons for non-appearance before the first appellate authority.
Held
The ITAT observed that the addition was sustained by the Ld. CIT(A) relying on the Assessing Officer's order. The Tribunal held that the assessee should be granted another opportunity to be heard on merit. Therefore, the matter was restored to the file of the Ld. CIT(A) with directions to provide an opportunity of hearing to the assessee and decide the issue on merit as per law.
Key Issues
Whether the Ld. CIT(A) was justified in dismissing the appeal in limine without adjudicating on merits, and if the assessee should be granted a fresh opportunity of hearing before the Ld. CIT(A).
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Income Tax Appellate Tribunal, DELHI BENCH ‘B’: NEW DELHI
Order
: 30.12.2025 O R D E R
PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER :
The assessee has filed appeal against the order of the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT(A)”, for short] dated 27.02.2025 for the Assessment Year 2017-18.
At the time of hearing, ld. AR for the assessee brought to our notice that the ld. CIT (A) decided the issue against the assessee by observing that assessee has not pursued the appeal despite being granted several opportunities and the details are given in the first appellate order by relying on several decisions and dismissed the appeal in limine. He submitted that ld. CIT (A) has not decided the issue on merit and prayed that this issue may be remitted back to the ld. CIT(A) with the prayer to give an opportunity of being heard to the assessee. He submitted that there are reasons for assessee for not appearing before the first appellate authority.
On the other hand, ld. DR for the Revenue objected to the submissions of the ld. counsel for the assessee and submitted that assessee has not utilised several opportunities granted by ld. CIT (A).
Considered the rival submissions and material placed on record. We observed that the addition was sustained by the ld. CIT (A) relying on the order of the Assessing Officer, in our considered view, assessee should be given one more opportunity of being heard on merit. Therefore, we restore the matter to the file of ld. CIT (A) and direct ld. CIT (A) to give an opportunity of being heard to the assessee and decide the issue on merit as per law. We also direct assessee to make proper submissions and appear before the ld.CIT (A) on the date of hearing and cooperate with the tax authorities. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on this 30th day of December, 2025.