2026 (6) TMI 460

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....tion has been filed. The matter is heard after recording the submissions of the Ld. Sr. DR and on a careful perusal of the materials available on record. 3. At the very outset, it is noted that the Ld. CIT(Appeals)/NFAC had dismissed the appeal of the assessee in limine by not condoning the delay of 140 days. That as discernable from the order of the Ld. CIT(Appeals)/NFAC, no sufficient cause in accordance with Section 249(3) of the Income Tax Act, 1961 (for short 'the Act') has been stated by the assessee and hence, the appeal was dismissed as barred by limitation. The relevant paras of the Ld. CIT(Appeals)/NFAC's are as follows: "2.1 A perusal of the Form No. 35, reveals that the assessment order was passed on 29/01/2024,....

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....e remanded back to the file of the Ld. CIT(Appeals)/NFAC for denovo adjudication as per law for considering the delay in terms with Section 249(3) of the Act in interest of substantive justice. 5. That the Hon'ble High Court of Bombay in the case of in the case of CIT Vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bom) had categorically held that the appellate authority has to adjudicate all the grounds on merits and cannot dismiss the appeal in limine on the ground of delay or for non-prosecution. In the aforementioned case the Hon'ble High Court had observed as under: "8. From the aforesaid provisions, it is very clear once an appeal is preferred before the CIT(A), then in disposing of the appeal, he is obliged to mak....

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....aw its return of income, it is not open to the assessee in appeal to withdraw and/or the CIT (A) to dismiss the appeal on account of non-prosecution of the appeal by the assessee. This is amply clear from the s. 251(1)(a) and (b) and Explanation to Sec. 251(2) of the Act which requires the CIT (A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before him. Accordingly, the law does not empower the CIT (A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act." 6. The principle of law as enshrined in the judgment of the Hon'ble High Court of Bombay in the case of CIT Vs. Premkumar Arjundas Luthra (HUF) (supra), tran....

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..... Needless to say, the Ld. CIT(Appeals)/NFAC shall afford reasonable opportunity of being heard to the assessee as per law. Accordingly, the order of the Ld. CIT(Appeals)/NFAC is set-aside. 8. As per the above terms, grounds of appeal raised by the assessee stands allowed for statistical purposes. 9. In the result, appeal of the assessee is allowed for statistical purposes." 7. The fact of the matter is that since the assessee has not provided any reasons in terms with Section 249(3) of the Act the appeal was dismissed in limine on law of limitation itself, therefore, balancing the scales of justice, it would be appropriate to provide one final opportunity to the assessee to represent its case before the Ld. CIT(Appeals....