Facts of the Case

The assessee filed its return of income for Assessment Year 2014-15. The assessment was completed by the Assessing Officer under Sections 143(3) read with Section 144 of the Income-tax Act, 1961, determining income substantially higher than that returned.

Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). However, the CIT(A) dismissed the appeal ex-parte in limine due to non-appearance of the assessee, without adjudicating the grounds raised on merits.

Issues Involved

Whether the Commissioner (Appeals) is justified in dismissing an appeal ex-parte without deciding the issues on merits and without complying with the requirements of Section 250(6).

Petitioner’s Arguments (Assessee)

  • The appellate order was passed ex-parte without considering the substantive grounds of appeal.
  • The CIT(A) failed to adjudicate multiple issues raised against additions made by the Assessing Officer.
  • Section 250(6) mandates that the appellate authority must pass a reasoned order on merits.
  • Reliance was placed on judicial precedents holding that appeals cannot be dismissed for non-appearance alone.
  • The assessee sought restoration of the matter for fresh adjudication.

Respondent’s Arguments (Revenue)

  • The assessee failed to appear before the CIT(A) despite opportunities.
  • Therefore, the CIT(A) was justified in disposing of the appeal based on available records.

Court Order / Findings (ITAT)

  • The CIT(A) is a quasi-judicial authority and is required to adjudicate issues on merits.
  • Section 250(6) mandates a speaking order stating points for determination, decision thereon, and reasons.
  • An appeal cannot be dismissed merely for non-appearance of the appellant.
  • Failure to decide grounds on merits violates principles of natural justice.
  • Judicial precedents, including Supreme Court decisions, support the requirement of merits-based adjudication.

Important Clarification

The Tribunal did not adjudicate the substantive additions on merits. Instead, it emphasized procedural fairness and directed the appellate authority to pass a reasoned order in accordance with law after granting due opportunity. 

Link to download the order –

https://itat.gov.in/public/files/upload/1619075867-vijayenterprisesexpartecit(a).pdf

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