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)

DCIT, Ncc 7(1), Chennai vs. Raju Saravanan, Chennai

In the result, the appeal of the Revenue is dismissed

ITA 272/CHNY/2021[2017-18]Status: DisposedITAT Chennai28 Jun 2023AY 2017-18

Bench: Shri Manjunatha. G & Shri Manomohan Dasआयकर अपील सं./Ita No.272/Chny/2021 िनधा'रण वष' /Assessment Year: 2017-18 The Dy. Commissioner Of Shri Raju Saravanan, Income Tax, No.8, G-3 Santham Apts., Thamarai Nagar, 2Nd Street, Non Corporate Circle-7(1), Vs. Chennai. Thirumullaivoyal, Chennai – 600 062. [Pan: Bbcps-8286-C] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ) की ओर से/ Assessee By : Shri G. Baskar, Advocate & Shri I. Dinesh, Advocate +,थ) की ओर से /Revenue By : Shri Arv Sreenivasan, Addl. Cit : 08.06.2023 सुनवाई क" तारीख/Date Of Hearing घोषणा क" तारीख /Date Of Pronouncement : 28.06.2023 आदेश / O R D E R Per Manomohan Das, J.M: This Appeal Filed By The Revenue Is Directed Against The Order Of The Learned Commissioner Of Income Tax (Appeals), Chennai [Cit(A) Dated 18-09-2020 & Pertains To Assessment Year (Ay) 2017-18. The Revenue Has Raised The Following Ground Of Appeal:- “The Learned Cit-A Has Erred In Not Providing An Opportunity To The Ao Under Rule 46A As New Evidence Was Submitted By The Assessee During The Course Of The Appellate Proceedings.” :- 2 -: 2. The Brief Facts Of The Case Are That The Assessee Is An Individual

For Appellant: Shri G. Baskar, Advocate &For Respondent: Shri ARV Sreenivasan, Addl. CIT
Section 133ASection 142(1)Section 143(2)Section 143(3)

DCIT, C.C.-3(4), Kolkata vs. M/S Tanishque Trade Link Pvt. Ltd, Howrah

In the result, appeal of the revenue is dismissed

ITA 17/KOL/2021[2008-09]Status: DisposedITAT Kolkata16 Mar 2023AY 2008-09

Bench: Shri Sanjay Garg, Hon’Ble & Dr. Manish Borad, Hon’Blei.T.A. No. 17/Kol/2021 Assessment Year: 2008-09 Deputy Commissioner Of Income Tanishque Tradelink Pvt. Ltd. Tax, Central Circle-3(4), Kolkata Vs Bhabatarini Apartment G.T. Road, Room No. 602 Howrah - 711201 [Pan : Aacct7512R] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri A.K. Tibrewal, Fca Revenue By : Shri Biswanath Das, Cit D/R सुनवाई क" तारीख/Date Of Hearing : 18/01/2023 घोषणा क" तारीख /Date Of Pronouncement: 16/03/2023 आदेश/O R D E R Per Dr. Manish Borad: The Present Appeal Is Directed At The Instance Of The Revenue Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-6, Kolkata (Hereinafter The “Ld. Cit(A)”) Dated 24/09/2020, Passed U/S 250 Of The Income Tax Act, 1961 (‘The Act’), For Assessment Year 2008-09. 2. The Revenue Has Raised The Following Grounds Of Appeal:- “1. That On Facts & In The Circumstances Of The Case, The Ld. Cit(A) Has Erred In Law As Well As In Facts In Allowing The Bogus Share Capital Raised In The Books Of The Assessee Without Appreciating The Fact That The Assessee Failed To Discharge Its Primary Onus To Prove & Establish The Identity & Creditworthiness Of The Investor Companies & Genuineness Of The Transaction. 2. That On The Facts & In The Circumstances Of The Case, The Ld. Cit(A) Has Erred In Law As Well As In Facts In Ignoring That The Identity & Creditworthiness Of The Shareholders & Even The Genuineness Of The Transactions Remained Unexplained. 3. That On Facts & In The Circumstances Of The Case, The Ld. Cit(A) Has Erred In Not Invoking His Powers U/S. 250(4) Of The I.T. Act, 1961 In Directing The Assessing Officer To Make Further Enquiry & Report The Results Of The

For Appellant: Shri A.K. Tibrewal, FCAFor Respondent: Shri Biswanath Das, CIT D/R
Section 133(6)Section 143(3)Section 147Section 148Section 14ASection 250Section 250(4)Section 263Section 68