Appellate order under section 250(6) must give reasons; absent merits finding, remand is proper when fresh evidence needs verification.

An ex parte first appellate order was found unsustainable because it did not record the points for determination, the decision on each point, or the reasons, as required by section 250(6) of the Income-tax Act, 1961. The Tribunal noted that the appellate authority must examine the matter afresh and exercise co-terminus powers with the Assessing Officer. Since the additional evidence, including material relating to the section 54B claim, went to the root of the dispute and other claims also required factual verification and cross-examination of documents, the additional evidence was admitted and the matter was remanded for fresh adjudication on merits.

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Issues: Whether an ex parte appellate order passed without recording the points for determination, the decision thereon, and reasons therefor was sustainable, and whether the matter, along with the additional evidence filed, required restoration for fresh adjudication.

Analysis: The appeal before the first appellate authority had been dismissed without any reply from the assessee, but the order did not adjudicate the issues on merits. Section 250(6) of the Income-tax Act, 1961 requires the appellate order to state the points for determination, the decision thereon, and the reasons for the decision. The Tribunal noted that the first appellate authority has co-terminus powers with the Assessing Officer and is obliged to examine the matter afresh. It further found that the additional evidence relating to the claim under section 54B was relevant and went to the root of the dispute, and that the other claims also required factual verification and cross-examination of documents and evidence.

Conclusion: The ex parte appellate order was held unsustainable, the additional evidence was admitted, and the matter was remanded to the first appellate authority for fresh adjudication on merits.

Ratio Decidendi: An appellate order under section 250(6) must contain the points for determination, the decision thereon, and reasons, and where the first appellate authority fails to decide the appeal on merits, the appropriate course is remand for fresh consideration, especially when material additional evidence requires verification.

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