Nimblelogik Pvt. Ltd. Vs ACIT (ITAT Pune)
In a notable relief secured by Adv. Sachin P. Kumar, the Hon’ble Income Tax Appellate Tribunal, Pune Bench “A”, passed a significant order in ITA No. 2263/PUN/2025 for A.Y. 2022-23, reiterating the statutory obligation of the CIT(A) to decide appeals on merits and not dismiss them merely for non-prosecution.
The assessee company, engaged in the business of transportation and logistics services, had filed its return declaring nil income. During scrutiny assessment under Section 143(3), the Assessing Officer made additions aggregating to Rs.1.50 crore on account of alleged unexplained share premium under Section 68, trade payables, loans/advances, and ad-hoc disallowance of expenses.
Aggrieved by the assessment order, the assessee preferred an appeal before the Ld. CIT(A)/NFAC. However, due to repeated adjournments sought while preparing detailed submissions, the Ld. CIT(A)/NFAC proceeded to dismiss the appeal ex parte for want of prosecution, without adjudicating the issues on merits.
Before the Tribunal, Adv. Sachin P. Kumar strongly contended that the dismissal of appeal solely for non-prosecution was contrary to the mandate of Section 250(6) of the Income Tax Act, 1961. It was argued that the appellate authority is legally bound to pass a speaking order stating points for determination, decisions thereon, and reasons for such decisions, even in cases where the assessee fails to appear.
