Callous Approach by CIT(A) for Summarily Dismissing Appeal: ITAT Restores Appeal Dismissed Over Mere Clerical Error [Read Order]

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has set aside an order passed by the first appellate authority under the faceless regime, holding that an appeal cannot be dismissed summarily owing to mere clerical error in Form No. 35 without adjudication on merits.

The appeal was filed by Jayshree Narendra Amin against the order of the National Faceless Appeal Centre. In the order, the Commissioner of Income Tax (Appeals) had dismissed the appeal solely on the ground that the assessee had incorrectly mentioned the assessment order as passed under Section 143(1) instead of Section 143(3) of the Income Tax Act, 1961. The dispute was regarding determination of fair market value under Section 56(2)(x).

The Tribunal noted that the CIT(A) failed to decide the issue on merits and rejected the appeal purely on a technical mistake. The Bench observed that such an approach reflected non-application of mind. It also amounted to abdication of statutory duties vested upon the first appellate authority.

The Tribunal described the action of the CIT(A) as “callous” and highlighted that several instances of negligent disposal of appeals have been noticed, particularly under the faceless regime. The Bench further urged the Central Board of Direct Taxes to examine such issues and devise procedure to fix responsibility.

Accordingly, the Tribunal set aside the impugned order and restored the matter to the file of the CIT(A) with a direction to adjudicate afresh on merits in accordance with law.

The appeal was thus allowed.

The order was pronounced on January 27, 2026 by a Bench comprising Sanjay Garg (Judicial Member) and Annapurna Gupta (Accountant Member).

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