Suthir Subramaniam Vs ITO (ITAT Chennai)
ITAT Chennai Sets Aside Ex-parte NFAC Order; Holds CIT(A) Cannot Dismiss Appeal for Non-compliance Without Deciding on Merits
The Chennai ‘C’ Bench of the ITAT, in Shri Suthir Subramaniam Vs. ITO, Ward 2(1), Erode (ITA No.2960/CHNY/2025, AY 2020-21, order dated 16-12-2025), quashed the ex-parte order passed by the CIT(A), NFAC, Delhi, which had dismissed the appeal in-limine for non-compliance. The Tribunal noted that though the Assessee failed to respond to three notices issued by the First Appellate Authority, the CIT(A) had no jurisdiction to dismiss the appeal for default without adjudicating the issues on merits. Relying on the Madras High Court decision in Southern Steel Industries vs. AAC (CT) [1996] 101 STC 273 (Mad), the Tribunal held that the appellate authority is duty-bound to decide the appeal on merits even in the absence of the Assessee. Accordingly, the impugned NFAC order was set aside and the matter was remitted back to the AO for fresh adjudication, with a direction to grant reasonable opportunity of hearing to the Assessee, who was also cautioned to co-operate and not seek unnecessary adjournments. The appeal was thus allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT CHENNAI
