Facts of the Case

The assessee had not filed the return of income for the relevant assessment year. The Assessing Officer completed the assessment by making various additions and determined the total income at ₹13,02,820. Aggrieved by the assessment order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The learned CIT(A), however, dismissed the appeal ex-parte. The assessee thereafter filed an appeal before the Income Tax Appellate Tribunal with a delay, along with an application for condonation of delay.

Issues Involved

  1. Whether the delay in filing the appeal before the Tribunal was liable to be condoned.
  2. Whether the ex-parte order passed by the CIT(A) without a speaking order was sustainable in law.
  3. Whether dismissal of appeal without adjudication on merits violates Section 250(6) of the Income-tax Act, 1961.

 Petitioner’s (Assessee’s) Arguments

The assessee contended that the delay in filing the appeal was unintentional and beyond his control. It was further argued that the CIT(A) passed the appellate order ex-parte without providing sufficient opportunity of being heard and failed to pass a reasoned and speaking order as mandated under Section 250(6) of the Act.

Respondent’s (Revenue’s) Arguments

The learned Senior Departmental Representative did not raise any objection to the assessee’s application for condonation of delay. During the hearing before the Tribunal, the Department relied on the material available on record.

Court Order / Findings

The Tribunal condoned the delay in filing the appeal, considering the facts and circumstances of the case. On merits, the Tribunal observed that Section 250(6) of the Income-tax Act clearly mandates the CIT(A) to dispose of an appeal by passing a speaking order, stating the points for determination, the decision thereon, and the reasons for such decision. The Tribunal held that even in cases of non-appearance by the assessee, the appellate authority is duty-bound to decide the appeal on merits. Accordingly, the impugned ex-parte order of the CIT(A) was set aside and the matter was restored to the file of the CIT(A) for passing a de novo speaking order after providing reasonable opportunity of being heard to the assessee.

Important Clarification

The Tribunal clarified that non-attendance or non-compliance by the assessee does not absolve the CIT(A) from the statutory obligation under Section 250(6) of the Income-tax Act. An appellate order must necessarily be a reasoned and speaking order on merits, failing which it is liable to be set aside.

Link to download the order - https://www.mytaxexpert.co.in/uploads/1770710385_ACHCHHELALYADAVDECEASEDLHAMARSINGHYADAVALLAHABADVS.ITOWARD21ALLAHABADALLAHABAD.pdf  

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.