CIT(A) Must Decide Ex-Parte Appeal on Merits: ITAT [Read Order]
It was observed that CIT(A) did not review the case on merits, as required under section 250(6). Referring to a Bombay High Court ruling, it was held that appeals must be decided on merits even if heard ex-parte
![CIT(A) Must Decide Ex-Parte Appeal on Merits: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/ITAT-ITAT-Chennai-Ex-Parte-Ex-Parte-Appeal-on-Merits-taxscan.jpg "CIT(A) Must Decide Ex-Parte Appeal on Merits: ITAT [Read Order]")
The Cochin Bench of Income Tax Appellate Tribunal (ITAT) ruled that the Commissioner of Income Tax(Appeals)[CIT(A)] must decide ex-parte appeal on merits. Premalatha Korottoliprasantham ,appellant-assessee,was in the business of trading automobile spare parts and accessories. No income tax return was filed for Assessment Year(AY) 2017-18. Cash deposits made during the demonetisation...
The Cochin Bench of Income Tax Appellate Tribunal (ITAT) ruled that the Commissioner of Income Tax(Appeals)[CIT(A)] must decide ex-parte appeal on merits.
Premalatha Korottoliprasantham ,appellant-assessee,was in the business of trading automobile spare parts and accessories. No income tax return was filed for Assessment Year(AY) 2017-18. Cash deposits made during the demonetisation period led to a notice under section 142(1) on January 30, 2017, but there was no response.
As a result, the assessment was completed under section 144 on December 12, 2019, determining a total income of ₹16,23,149, with an 8% addition as business income.
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The assessee appealed to the CIT(A), but it was dismissed ex parte for non-prosecution, citing the Supreme Court's ruling in CIT vs. B.N. Bhattacharjee (1977). Aggrieved by the order the assessee appealed before the tribunal.
The two member bench comprising Prakash Chand Yadav(Judicial Member) and Inturi Rama Rao(Accountant Member) noted that the CIT(A) dismissed the appeal without examining the merits, contrary to section 250(6) of the Act.
Read More:CIT(A) Rejects Appeal without Merit Discussion: ITAT remits Case for Fresh Hearing
Citing the Bombay High Court’s ruling in PCIT vs. Premkumar Arjundas Luthra (279 CTR 614), the tribunal held that the appeal should be decided on merits, even in ex parte cases. The matter was remanded to the CIT(A) with instructions to reconsider it after giving the assessee a fair hearing.
In short, the appeal filed by the assessee was allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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