The Income Tax Appellate Tribunal observed that the Commissioner...

The Income Tax Appellate Tribunal observed that the Commissioner of Income Tax (Appeals) dismissed the assessee's appeal ex-parte without deciding issues on merits, which is not in consonance with Section 250(6) of the Income Tax Act, 1961. The CIT(A) is required to adjudicate issues arising in the appeal on merits by stating points for determination, decision thereon, and reasons. The CIT(A) has power to make inquiries u/s 250(4). The notice of hearing was not properly served on the assessee as required u/s 282 read with Rule 127. The assessee claimed business closure since 2018 but did not intimate the revenue as required u/s 176(3). The assessee is a partnership firm, and Section 189(4) applies in case of discontinuance or dissolution after assessment proceedings commenced. Complete inquiry is required regarding the firm's status, and the assessee must furnish true and correct facts before the CIT(A). The appellate order is set aside, and the matter is restored to the CIT(A) for de novo adjudication, providing proper opportunity to both parties. The assessee must comply with notices; otherwise, an ex-parte order on merits may be passed.