CIT(Appeals)/NFAC Cannot Dismiss Appeals in Limine without Examining Merits: ITAT [Read Order]
The bench stated that Sections 250(4) and 250(6) of the Income Tax Act, 1961, mandate the appellate authority to conduct further inquiry if necessary, state points for determination, and record decisions with reasons.
The Income Tax Appellate Tribunal ( ITAT ) of Raipur Bench, has held that the Commissioner of Income Tax (Appeals) [CIT(A)]/National Faceless Appeal Centre (NFAC) cannot summarily dismiss an assessee’s appeal in limine without examining the merits of the case.
According to the tribunal “In this case, first of all, the assessee needs to explain the reasonable/sufficient cause for such inordinate delay in filing appeal before the Ld. CIT(Appeals)/NFAC in terms with Section 249(3) of the Act and the Ld. CIT(Appeals)/NFAC shall consider the submission of the assessee on the aspect of delay and decide such condonation validity and thereafter, shall look into the merits of the matter.”
An appeal filed by Dilip Tripathi against the order of the CIT(A)/NFAC, Delhi, dated 26 June 2025, relating to the assessment year 2015-16. While the appeal before the appellate tribunal was delayed by three days, it condoned the delay after considering the medical evidence produced by the assessee and the absence of objection from the Revenue.
On merits, the controversy centered on the fact that the assessee had filed an appeal before the CIT(A)/NFAC with a delay of more than five years (1832 days). The NFAC dismissed the appeal solely on grounds of limitation without considering the merits of the case.
The Tribunal observed that as per the settled law, once an appeal is filed before the CIT(A), the authority is legally obliged to adjudicate on the merits and cannot dismiss it summarily for delay or non-prosecution.
The appellate tribunal noted down the Bombay High Court’s decision in CIT v. Premkumar Arjundas Luthra, which held that the CIT(A) must provide a reasoned decision on every issue arising from the impugned assessment order and has powers co-terminus with those of the Assessing Officer.
The bench stated that Sections 250(4) and 250(6) of the Income Tax Act, 1961, mandate the appellate authority to conduct further inquiry if necessary, state points for determination, and record decisions with reasons.
The statutory framework, therefore, does not empower the CIT(A) to dismiss an appeal in limine, even if filed belatedly. Instead, the authority must first examine whether sufficient cause exists for condoning the delay under Section 249(3), and thereafter, proceed to decide the appeal on merits.
Accordingly, the bench of Partha Sarathi Chaudhary set aside the NFAC’s order and remanded the matter for de novo adjudication, directing the CIT(A)/NFAC to first decide the issue of condonation of delay and then address the substantive grounds of appeal.
Additionally, the Tribunal warned the assessee that this would be their last chance and that they must strictly abide by the notifications given during the remand hearings.
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