Jayshree Narendra Amin Vs ITO (ITAT Ahmedabad)
The assessee filed an appeal before the Income Tax Appellate Tribunal, Ahmedabad, challenging the order dated 11 September 2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, for Assessment Year 2018–19. The appeal before the first appellate authority related to the determination of fair market value of a property purchased by the assessee under section 56(2)(x) of the Income-tax Act, 1961.
The Commissioner (Appeals) dismissed the assessee’s appeal solely on the ground that, in Form No. 35, the assessee had mentioned that the appeal was against an order passed under section 143(1) instead of section 143(3) of the Act. The Tribunal noted that this error was purely clerical in nature. On examining the impugned order, the Tribunal observed that the Commissioner (Appeals) had reproduced the facts of the case, the grounds of appeal, and the submissions made by the assessee on each ground, but nevertheless rejected the appeal summarily on account of the clerical mistake in the appeal form.
The Tribunal held that the Commissioner (Appeals) ought to have adjudicated the appeal on merits, particularly after discussing the facts, grounds, and submissions. The summary dismissal without examining the merits was held to be a callous approach and an abdication of the statutory duties vested in the first appellate authority. The Tribunal also noted that such negligent disposal of appeals, especially in the faceless regime, had been observed in several cases, and requested the Central Board of Direct Taxes to examine this issue and devise procedures to fix responsibility.
