Appellate merits must be decided independently; dismissal for delay or non-participation alone was set aside and remanded.

An appellate tribunal must adjudicate the substantive grounds raised in appeal and cannot dispose of the matter merely because of delay or alleged non-participation. Where the first appellate authority has already examined the issues on merits, the tribunal must independently consider those grounds before reaching a conclusion. Delay during the Covid-19 period was treated as insufficient, by itself, to justify non-adjudication of the merits. The tribunal's order was set aside and the matter remanded for fresh consideration on merits in accordance with law.

---

---

Issues: Whether the Tribunal was justified in dismissing the assessee's appeal without deciding the grounds on merits and whether the matter required remand for fresh disposal.

Analysis: The Tribunal's order showed that the dismissal rested substantially on the delay in disposal before the first appellate authority and the assessee's alleged non-participation, rather than on an examination of the substantive grounds raised in appeal. The order of the first appellate authority had, in fact, dealt with the grounds on merits, but the Tribunal did not independently analyse those grounds. The High Court also noted the impact of the Covid-19 period on appellate delays and held that the delay by itself could not justify non-adjudication of the merits.

Conclusion: The Tribunal's order was set aside and the matter was remanded for fresh consideration on merits in accordance with law, in favour of the assessee.

Ratio Decidendi: An appellate authority must decide the appeal on the substantive grounds raised and cannot sustain dismissal merely on the basis of delay or non-participation where the merits require adjudication.

---