Rajat Kumar Gupta Vs ITO (ITAT Raipur)
CIT(A) Under Faceless Appeal Scheme Cannot Dismiss Appeal for Non-Payment of Admitted Tax—Matters Remanded
In Rajat Kumar Gupta v. ITO-1, Ambikapur (ITA Nos. 736 & 737/RPR/2025; AYs 2014-15 & 2015-16), the ITAT Raipur Bench examined whether a CIT(A) functioning as an Appeal Unit (AU) under the Faceless Appeal Scheme could dismiss appeals at the threshold under Section 249(4) for alleged non-payment of admitted tax.
The assessee’s cases were reopened and additions were made u/s 69A treating substantial bank deposits as unexplained. The CIT(A), NFAC, dismissed both appeals without admitting them, holding them non-maintainable for non-payment of admitted tax under Section 249(4), without adjudicating merits.
The Tribunal held that under CBDT Notification F. No. S.O. 3296(E) dated 25-09-2020, the power to admit or reject appeals under Sections 249(2)/(4) lies with the NFAC/RFAC, not with the Appeal Unit/CIT(A) assigned to decide the appeal on merits. Further, the assessee had actually paid the admitted tax (either before or during appellate proceedings), and in any case was entitled to a reasonable opportunity before rejection.
Key Rulings & Directions:
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CIT(A) (as AU) lacked jurisdiction to dismiss appeals under Section 249(4).
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Dismissal without admission was unjustified and contrary to the Faceless Appeal Scheme.
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Right of appeal is a substantive right and must be construed liberally.
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Both matters set aside and remanded to CIT(A) for admission first (via NFAC process) and thereafter de novo adjudication on merits, after giving due opportunity to the assessee.
Outcome: Appeals allowed for statistical purposes; matters restored to CIT(A) for fresh consideration in accordance with law.
FULL TEXT OF THE ORDER OF ITAT RAIPUR
