Reasoned appellate orders under income tax law are mandatory; ex parte dismissal without merits was set aside and remanded.

An ex parte first appellate order dismissing an assessee's appeal without addressing the merits or recording reasons was unsustainable because section 250(6) requires the points for determination, the decision on each point, and supporting reasons. The Tribunal held that a reasoned order after hearing the assessee is mandatory, and the absence of such consideration justified setting aside the dismissal. The matter was restored to the first appellate authority for fresh adjudication in accordance with law, with an opportunity of hearing to the assessee.

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Issues: Whether an ex parte appellate order dismissing the assessee's appeal without dealing with the merits and without recording reasons could be sustained, and whether the matter required remand for fresh adjudication under section 250(6) of the Income-tax Act, 1961.

Analysis: The appellate order was found to be ex parte and to have dismissed the appeal in limine without discussing the issues on merits. The statutory duty under section 250(6) requires the first appellate authority to dispose of the appeal by stating points for determination, the decision thereon, and reasons supporting the conclusion. As the order did not satisfy that requirement, and in view of the need to afford the assessee an opportunity of hearing, the merits were not examined by the Tribunal and the matter was restored to the first appellate authority for fresh decision in accordance with law.

Conclusion: The ex parte appellate order was set aside and the issues were remitted for fresh adjudication; the assessee succeeded to that extent.

Final Conclusion: The appeal was disposed of by restoring the matter to the first appellate authority for a reasoned decision after giving the assessee an opportunity of hearing.

Ratio Decidendi: An appellate authority must pass a reasoned order dealing with the issues on merits in compliance with section 250(6) of the Income-tax Act, 1961, and an ex parte dismissal without such consideration is not sustainable.

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