2025 (11) TMI 810

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....e Tax Act, 1961, for Assessment Years 2016-17 and 2019-20 respectively. Since the issues involved in both appeals are common, except variation in quantum, they are heard together and disposed of by this consolidated order for the sake of convenience. 2. Facts of the Case 2.1 The assessee had filed his return of income as detailed below: Assessment Year Date of Filing Returned Income (Rs.) 2016-17 13.10.2016 3,09,860/- 2019-20 31.08.2019 3,10,720/- 2.2 Subsequently, information was received from the Investigation Wing, Vadodara, in connection with search and seizure operations carried out in the case of the Darshanam Group. In the course of postsearch investigations, various incriminating documents were se....

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....d to produce any evidence to rebut the seized material, the Assessing Officer treated the advances as unexplained. 2.5 Accordingly, in A.Y. 2016-17, the Assessing Officer made an addition of Rs. 75,00,000/-, and in A.Y. 2019-20 an addition of Rs. 25,00,000/-, by invoking the provisions of section 69 read with section 115BBE of the Act. The assessments were thus completed determining the total income at Rs. 78,09,860/- in A.Y. 2016-17 and Rs. 28,10,720/- in A.Y. 2019-20. 2.6 The assessee carried the matter in appeal before the Learned CIT(A). Along with Form No. 35, the assessee did not file the Statement of Facts. NFAC issued a deficiency notice dated 04.02.2025, calling upon the assessee to cure the defect by 10.02.2025. As per recor....

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..... The Learned Commissioner of Income Tax (Appeals) erred in not setting aside the assessment u/s 251 of the Act despite the fact that the order was passed u/s 147 rws 144B of the Act. 6. The Learned Commissioner of income Tax (Appeals) erred in disregarding the Grounds of Appeal filed by the appellant. 7. The appellant craves the right to add to or alter, amend, substitute, delete or modify all or any of the above grounds of appeal. (In Case of A.Y. 201920 the amount of addition us 69A r.w.s. 115BBE of the Act is Rs. 25,00,000/-) 3. During the course of hearing, the Learned Authorised Representative (AR) submitted that the Learned CIT(A) has grossly erred in law and on facts in dismissing the appeal as nonmaintainabl....

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....d mandate. 5.2 The scheme of the Act makes it clear that the first appellate authority is vested with wide powers, extending to a complete reexamination of the assessment order. Once an appeal is validly instituted, the appellate authority is under a statutory duty to adjudicate the issues raised and render a decision on merits. An appeal cannot be rejected at the threshold for mere technical or procedural deficiencies such as non-filing of a Statement of Facts, particularly when the grounds of appeal are already on record. 5.3 In the present case, the CIT(A) has dismissed the appeals as non-maintainable solely on the ground that the Statement of Facts was not filed along with Form No. 35. Such an approach, in our considered view, is ....