Facts of the Case

The assessee, Shri Anjanish Kumar Tiwari, filed his return of income for Assessment Year 2017-18 on 17.08.2017 declaring total income of ₹10,94,454. The Assessing Officer completed the assessment under Section 143(3) of the Income Tax Act and determined total income at ₹12,64,128, resulting in a demand of ₹3,00,000.

Aggrieved by the assessment order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). However, the CIT(A) dismissed the appeal vide order dated 28.01.2025 on the ground of non-prosecution, without adjudicating the grounds of appeal on merits. The assessee thereafter preferred an appeal before the Income Tax Appellate Tribunal.

 Issues Involved

  1. Whether the Commissioner of Income Tax (Appeals) was justified in dismissing the appeal for non-prosecution.
  2. Whether dismissal of appeal without passing a speaking order violates the mandate of Section 250(6) of the Income Tax Act.
  3. Whether such an appellate order is liable to be set aside and remanded for fresh adjudication.

 Petitioner’s (Assessee’s) Arguments

The assessee challenged the appellate order on the ground that the CIT(A) dismissed the appeal for non-prosecution without deciding the issues on merits and without passing a reasoned and speaking order as required under the law.

 Respondent’s (Revenue’s) Arguments

The Revenue relied upon the orders passed by the lower authorities. The Tribunal examined the matter based on the records available.

 Court Order / Findings

The ITAT observed that the CIT(A) dismissed the appeal solely for non-prosecution and failed to adjudicate the issues raised by the assessee on merits. The Tribunal emphasized that under Section 250(6) of the Income Tax Act, the CIT(A) is under a statutory obligation to pass a speaking order dealing with the grounds of appeal.

Holding that the impugned appellate order was not in accordance with law, the ITAT set aside the order dated 28.01.2025 and restored the matter to the file of the CIT(A) with a direction to pass a de novo order on merits in accordance with law after providing reasonable opportunity of being heard to the assessee.

 Important Clarification / Legal Principle

An appeal cannot be dismissed for non-prosecution without adjudicating the grounds on merits. Section 250(6) mandates that the appellate authority must pass a reasoned and speaking order. Failure to do so renders the appellate order unsustainable in law and liable to be set aside.

Link to download the order -  https://www.mytaxexpert.co.in/uploads/1770872604_ANJANISHKUMARTIWARIALLAHABADVS.INCOMETAXOFFICERALLAHABADALLAHABAD.pdf  

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