Facts of the Case

The assessee, an individual, filed his return of income for Assessment Year 2015-16 declaring total income of ₹2,41,890. The Assessing Officer completed the assessment under section 147 read with section 144B of the Income Tax Act, 1961, determining total income at ₹10,97,576 by making an addition of ₹8,55,686.

Aggrieved by the assessment order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). The learned CIT(A), vide order dated 28.03.2025, dismissed the appeal. The assessee thereafter preferred an appeal before the Income Tax Appellate Tribunal.

 Issues Involved

  1. Whether the appellate order passed by the CIT(A) without providing reasonable opportunity of hearing is sustainable in law.
  2. Whether a summary and non-speaking appellate order violates the mandatory provisions of section 250(6) of the Income Tax Act.
  3. Whether the matter relating to additions made in assessment requires restoration for fresh adjudication.

 Petitioner’s Arguments

The assessee challenged the impugned appellate order on the ground that it was passed without granting reasonable opportunity of being heard. It was contended that the order was summary in nature and failed to adjudicate the grounds of appeal by recording proper findings and reasons, thereby violating statutory provisions and principles of natural justice.

 Respondent’s Arguments

The learned Departmental Representative relied upon the assessment order and the order passed by the learned CIT(A) and supported the action of the lower authorities.

 Court Order / Findings

The Tribunal, after examining the material on record, observed that the learned CIT(A) had passed the impugned appellate order without providing reasonable opportunity to the assessee. It further noted that the order was not a speaking order, as it did not deal with the various grounds of appeal in the manner mandated under law.

The Tribunal held that the appellate order was passed in violation of section 250(6) of the Income Tax Act, which requires the appellate authority to pass a reasoned order stating the points for determination, the decision thereon, and the reasons for such decision.

Accordingly, the impugned appellate order was set aside and the matter was restored to the file of the CIT(A) with a direction to pass a de novo order in accordance with law after providing reasonable opportunity to the assessee. The appeal was partly allowed for statistical purposes.

 Important Clarification

The Tribunal reiterated that compliance with section 250(6) is mandatory even in faceless appellate proceedings. An appellate authority is duty-bound to pass a speaking and reasoned order after granting adequate opportunity of hearing, and failure to do so vitiates the appellate proceedings.

 Link to download the order – https://www.mytaxexpert.co.in/uploads/1770626803_RAMLAKHANMAURYAPRATAPGARHVS.ASSESSMENTUNITINCOMETAXDEPARTMENTALLAHABAD.pdf  

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