Facts of the Case

The assessee, an individual, filed his return of income for Assessment Year 2013-14 declaring total income of ₹18,25,030. The assessment was completed under section 143(3) of the Income Tax Act, 1961, and the Assessing Officer determined total income at ₹1,17,83,580 by making various additions.Aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). Vide order dated 13.05.2025, the learned CIT(A) partly allowed the appeal. The assessee, being dissatisfied, 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 non-compliance with the mandatory requirement of section 250(6) vitiates the appellate order.
  3. Whether the issues in dispute require restoration for de novo adjudication on merits.

 Petitioner’s Arguments

The assessee contended that the impugned appellate order was passed without granting reasonable opportunity of being heard. It was submitted that the order did not comply with the mandate of section 250(6), which requires a speaking and reasoned order dealing with the grounds of appeal. The assessee prayed that the matter be restored to the file of the CIT(A) for fresh adjudication.

 Respondent’s Arguments

The learned Departmental Representative did not raise any objection to the request for restoration and left the matter to the discretion of the Tribunal.

 Court Order / Findings

The Tribunal observed that the learned CIT(A) passed the impugned appellate order without providing reasonable opportunity to the assessee. It further noted that the order did not ensure adherence to section 250(6) of the Income Tax Act, which mandates that the appellate authority must pass a speaking order stating the points for determination, the decision thereon, and the reasons for such decision.

In view of the above, the Tribunal set aside the impugned appellate order and restored the issues in dispute to the file of the CIT(A) with a direction to pass a de novo speaking order on merits, in accordance with law, after providing reasonable opportunity of being heard to the assessee.

Important Clarification

The Tribunal reiterated that compliance with section 250(6) is mandatory. Even where partial relief is granted, the appellate authority must pass a reasoned and speaking order after granting adequate opportunity of hearing. Failure to do so renders the appellate order unsustainable and necessitates restoration for fresh adjudication.

Link to download the order - https://www.mytaxexpert.co.in/uploads/1770628747_VIKASRASTOGIALLAHABADVS.FQy4HArVdBbZ87AHrbfdhSXRgyE5NUbrh6GaL8enMUeh.pdf

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