Hem Lal Sahu Vs ITO (ITAT Raipur)
CIT(A) Cannot Dismiss Appeal in Limine- 189 Days’ delay condoned, matter remanded for fresh decision ITAT Raipur.
Raipur Tribunal held that CIT(A) has no power to dismiss an appeal in limine on account of delay or non-prosecution. Once an appeal is filed, it must be adjudicated on merits in accordance with law.
Assessee filed return declaring income of ₹1,32,250. Subsequently, notice u/s 148 was issued & reassessment was completed u/s 147 r.w.s. 144 on 21.03.2023 by making addition of ₹5,00,000 u/s 68 towards unexplained unsecured loan. Assessee preferred appeal before CIT(A) with a delay of 189 days explaining that he was unaware of the order passed & delay was due to circumstances beyond control, not malafide. CIT(A) however dismissed the appeal in limine, observing that ignorance of law is no excuse.
Tribunal noted that under Sec. 249(3) sufficient cause needs to be explained for condonation & under Sec. 250(4) & (6) CIT(A) is duty bound to enquire into submissions & pass a reasoned order. It relied on decisions including Vidya Shankar Jaiswal Vs. ITO (SLP disposed 31.01.2025), Jagdish Prasad Singhania Vs. Addl. CIT (TDS), Raipur (HC order 24.02.2025), Inder Singh Vs. State of MP (SC order 21.03.2025) & Bombay HC ruling in CIT Vs. Premkumar Arjundas Luthra (HUF) (297 CTR 614) which categorically held that CIT(A) cannot dismiss appeal for non-prosecution or delay & must decide on merits. In view of the bona fide explanation & absence of misconduct, Tribunal condoned the delay of 189 days & remanded the matter to CIT(A) for de novo adjudication on merits. It further directed CIT(A) to dispose of the appeal within three months in accordance with Sec. 250(4) & (6), after giving the Assessee final opportunity to comply with notices.
