Landmark Exim Private Limited Vs DCIT (ITAT Delhi)
Speaking Order Missing- Mechanical Dismissal by CIT(A) Fails: ITAT Remands 43B Disallowance for Fresh Adjudication
Delhi ITAT ‘E’ Bench in Landmark Exim Pvt Ltd vs DCIT, Central Circle-5, Delhi (ITA No.5910/Del/2025, AY 2020-21, order dated 23-12-2025) set aside the order of CIT(A) insofar as it related to disallowance of ₹7.66 lakh u/s 43B, and restored the matter for fresh adjudication.
Assessee had inadvertently made a suo motu disallowance u/s 43B in respect of TDS payable, though such disallowance was not warranted under law. During assessment proceedings, assessee specifically brought this mistake to the notice of AO, but the issue remained unexamined. On appeal, CIT(A) merely dismissed the ground without dealing with merits or giving any reasons, despite noting the assessee’s submissions.
ITAT observed that the first appellate authority is duty-bound to pass a reasoned and speaking order, particularly when a clear legal claim is raised. Failure to adjudicate the issue on merits amounted to denial of effective appellate remedy.
Accordingly, Tribunal remanded the issue back to CIT(A) with a direction to examine the claim on merits and pass a speaking order after due opportunity to the assessee. Appeal was allowed for statistical purposes.
Even a self-inflicted disallowance can be corrected in appeal, and CIT(A) cannot dismiss a ground without reasons—a speaking order is not optional but mandatory.
FULL TEXT OF THE ORDER OF ITAT DELHI
