Section 250(4) of the Income Tax Act

Income-tax Act, 2025: s.359

Section 250(4) falls under section 250 of the Income-tax Act, 1961, which corresponds to section 359 (Procedure in appeal) of the Income-tax Act, 2025.

Read section 359 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 250(4) is Commissioner of Income Tax Madras v. Chenniyappa Mudiliar (1 SCC 591), cited in 225 of the 768 judgments on BharatTax that turn on this section.

Leading authorities on Section 250(4)

Commissioner of Income Tax Madras v. Chenniyappa Mudiliar
1 SCC 591 · 1985 · Reported
225
citing judgments

The appellate tribunal must render a proper decision on both facts and law, disposing of an appeal on its merits rather than dismissing it solely due to the appellant's absence. This obligation is derived from Section 33(4) of the Income Tax Act, 1922, and reflects principles of natural justice.

Vijay Shrinivasrao Kulkarni v. Income-tax Appellate Tribunal
171 Taxmann.com 696 · 2025 · High Court
200
citing judgments

The ITAT fails to uphold natural justice when it doesn't address an infirmity regarding an assessee being denied a proper opportunity of being heard before the CIT(Appeals)/NFAC dismissed the matter ex-parte.

Commissioner of Central Excise v. Johnson & Johnson Ltd.
251 ITR 323 · 2001 · Supreme Court
46
citing judgments

The transformation of bulk powder into regulated, consumable capsules constitutes manufacturing under the definition provided in various statutes, qualifying for associated tax benefits and deductions.

JT 2001(2) SC 642 and in BANK OF INDIA v. KETHAN PAREKH
8 SCC 148 · 2012 · Reported
45
citing judgments

When two special acts conflict, the later act generally prevails, unless the dominant purpose of the earlier act is covered by the contingency in question, in which case the earlier act may prevail.

CIT v. Hewlett Packard India
314 ITR 55 · 2009 · High Court
37
citing judgments

A provision for gratuity made on the basis of actuarial valuation is a revenue expenditure and allowable as a deduction in computing book profits for the purposes of section 115JB.

B.L.Choudhury v. CIT
112 ITD 293 · 2008 · ITAT
24
citing judgments

The Commissioner (Appeals) is obliged to give the assessing officer an opportunity to examine evidence called for under Rule 46A(4), even if the evidence was not filed by the assessee on its own.

Tarsem Singla v. DCIT
385 ITR 138 · 2016 · High Court
19
citing judgments

An assessment under Section 153A does not mandatorily require a notice under Section 143(2).

TR 222 (P&H) (b) Namasivayam Chettiar (S.N.) Vs. CIT (1960) 38 ITR 579 (SC) (c) Abdul Razak v. CIT
112 ITR 512 · 1978 · High Court
17
citing judgments

The assessee has a right to inspect reports and documents relevant to their assessment and to present evidence in rebuttal, aligning with principles of natural justice.

International Tractors Ltd. v. DCIT
435 ITR 85 · 2021 · High Court
16
citing judgments

The Delhi High Court allowed deduction under Section 80JJAA even if the claim was made during assessment proceedings, provided the claim was otherwise sustainable in law.

CIT v. Smt. Brinda Kumari
253 ITR 343 · 2002 · High Court
13
citing judgments

Giving an advance to a builder for the construction of a house is considered equivalent to construction for the purpose of claiming deduction under section 54F.

Judgments on Section 250(4)

ITO, Ward - 11(1), Kolkata vs. Sumangal Forex & Travels Pvt Ltd, Kolkata

ITA 2211/KOL/2024[2018-19]Status: DisposedITAT Kolkata11 Feb 2025AY 2018-19

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. No.2211/Kol/2024 Assessment Year: 2018-19 Ito, Ward-11(1), Kolkata …………………………………………….…..……Appellant Vs. Sumangal Forex & Travels Pvt. Ltd…………...........……........……...…..…..Respondent 9, Baliaghata Road, Kol-700015. [Pan: Aavcs1781J] C.O. No.60/Kol/2024 (Arising Out Of I.T.A. No.2211/Kol/2024 Assessment Year: 2018-19 Sumangal Forex & Travels Pvt. Ltd ……………….………………..….…..Cross-Objector 9, Baliaghata Road, Kol-700015. [Pan: Aavcs1781J] Vs. Ito, Ward-11(1), Kolkata................................................……........……...…..…..Respondent Appearances By: Shri Srikumar Banerjee, Ar, Appeared On Behalf Of The Assessee. Shri Arun Kr. Tiwari, Cit- Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : February 10, 2024 Date Of Pronouncing The Order : February 11, 2024 Order Per Sonjoy Sarma: The Revenue Has Filed An Appeal Against The Order Dated 25.07.2024 By The National Faceless Appeal Centre [Hereinafter Referred To As The ‘Cit(A)’] & The Assessee Has Filed The Corresponding Cross- Objection Relating To Assessment Year 2018-19. 2. Brief Facts Of The Case Are That The Assessee Is A Company & Engaged In Foreign Currency Exchange Business As Forex Dealer. The Assessee Filed Its Return Of Income For Assessment Year 2018-19 Declaring Total Income Of Rs.1,45,236/-. Since, The Assessee Was Non-Responsive Before The Investigation Wing As Well As Before The Assessing Officer, The

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