Limitation-based dismissal set aside; appeal restored for fresh decision on merits with hearing and speaking order.

Dismissal of the first appellate appeal as time-barred was found erroneous where the record did not support the assumed delay and the assessee showed later receipt of the assessment order. The appeal had been rejected solely on limitation without examining the substantive grounds, so the matter was restored for fresh disposal on merits. The first appellate authority was directed to pass a speaking order after giving a reasonable opportunity of hearing and, where applicable, to comply with Rule 46A of the Income-tax Rules, 1962.

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Issues: Whether the appeal before the first appellate authority was wrongly dismissed as time-barred and whether the matter required restoration for decision on merits.

Analysis: The assessee produced material to show that the assessment order had been received later than the date assumed by the first appellate authority, and the record did not support a finding of delay. The dismissal of the appeal solely on limitation, without examining the substantive grounds, was therefore found to be erroneous. The proper course was to decide the appeal on merits by passing a speaking order after granting a reasonable opportunity of hearing and by following Rule 46A of the Income-tax Rules, 1962, if applicable.

Conclusion: The dismissal for limitation was set aside and the appeal was restored to the first appellate authority for fresh disposal on merits.

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