ITAT Grants Relief to Assessee, Orders Fresh Hearing as CIT(A) Failed to Discuss Case Merits [Read Order]

The Income Tax Appellate Tribunal (ITAT), Agra Bench, has set aside an ex-parte order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] and directed a fresh hearing, noting that the CIT(A) failed to discuss the merits of the case. The bench pitched the importance of adhering to the principles of natural justice and providing a fair opportunity to the assessee.

Manoj Jairamdas Bhojwani, a resident of Etawah, Uttar Pradesh, filed an appeal against the order of the CIT(A) for the assessment year 2004-05. The CIT(A) had dismissed Bhojwani’s first appeal ex-parte, without addressing the substantive issues raised by the assessee.

The assessee challenged this dismissal before the ITAT, arguing that the CIT(A) violated Section 250(6) of the Income Tax Act, 1961, which mandates that the appellate authority must state the points for determination, the decision thereon, and the reasons for such a decision.

The ITAT bench, comprising Judicial Member Sunil Kumar Singh and Accountant Member Brajesh Kumar Singh, observed that while the assessee had been unresponsive to multiple notices issued by the CIT(A), the appellate authority was still required to evaluate the case on its merits. The tribunal noted that the CIT(A)’s order lacked any substantive discussion or reasoning, which rendered it unsustainable in law.

In its decision, the ITAT condoned a minor delay of three days in filing the appeal and remanded the matter back to the CIT(A) for a fresh adjudication.

The bench directed the assessee to cooperate fully with the proceedings and avoid unnecessary adjournments. It also instructed the CIT(A) to ensure compliance with the principles of natural justice while re-examining the case.

The case will now be reheard by the CIT(A) with a focus on the merits of the dispute.

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