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Ex-Parte NFAC Order Quashed for Violating Section 250(6): Case Remanded for Fresh Hearing

Case Law Details

TaxGuru Citation
2025 taxguru.in 12013
Case Name
Aligarh Wine Shop Co. Vs ITO (ITAT Agra)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
2018-19
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Aligarh Wine Shop Co. Vs ITO (ITAT Agra)

Non-Compliance Not Excuse for Non-Speaking Order – Ex-Parte NFAC Order Set Aside: ITAT Remands for Fresh Hearing u/s 250(6)

In this appeal u/s 250 arising from the ex-parte appellate order dated 31.08.2024, Tribunal noted that Aligarh Wine Shop Co., engaged in retail liquor business with turnover of Rs.7,00,82,450/-, reported GP of 13.60% & NP of 0.36%. During assessment, AO rejected books for non-production of stock register, cash book & transport details, & estimated income at Rs.56,06,596/-, being 8% of turnover. CIT(A), NFAC dismissed the appeal ex parte. Before Tribunal, Assessee explained that the delay of 275 days in filing appeal occurred due to the email ID of CA’s staff being used for e-proceedings, resulting in Assessee becoming unaware of the appellate order; delay was supported by affidavit of CA. Tribunal treated the cause as reasonable & condoned the delay.

Tribunal observed that although Assessee was non-responsive to notices issued by CIT(A), still CIT(A) is duty-bound u/s 250(6) to frame points for determination, give a reasoned decision & pass a speaking order. Since the impugned order lacked discussion on merits & violated statutory mandate, Tribunal set aside the order. Matter was restored to CIT(A) for fresh adjudication after providing adequate opportunity, & Assessee was directed to cooperate to enable expeditious disposal. Appeal was allowed for statistical purposes.

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Author Info

CA Vijayakumar Shetty
Qualification: CA in Practice
Company: Shetty & Co, Chartered Accountants, Mangalore
Location: Mangalore, Karnataka
Articles Published: 6,879

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