Order passed by CIT (A) without reasoning on the issues on merits is clearly in violation of section 250(6) of the Act and liable to be set side: ITAT Agra

 

Order passed by CIT (A) without reasoning on the issues on merits is clearly in violation of section 250(6) of the Act and liable to be set side: ITAT Agra

 

ITAT Agra recently in the case of SHUCHI VARSHNEY VERSUS INCOME-TAX OFFICER, WARD 4 (1) (1) , ALIGARH-No.- ITA No. 200/Agr/2023 has held that Order passed by CIT (A) without reasoning on the issues on merits is clearly in violation of section 250(6) of the Act and liable to be set side. The order was passed on December 6, 2024.

Let us have a Short Overview of the Case:  

The ld. CIT(A) simply dismissed the appeal of the assessee by upholding the assessment order passed by the AO by holding that he do not want to interfere with the assessment order passed by the AO.

The ld. CIT(A) has vast powers under the 1961 Act, which even include power of enhancement. The ld. CIT(A) is required and obligated to pass order in compliance with the provisions of section 250(6) where he has to state point for determination, his decision and reasoning thereof, as ld CIT(A) is required to pass reasoned and speaking order on merits in accordance with law with independent application of mind on material on record as well collected by him during appellate proceedings.

The appellate order passed by ld. CIT(A) is subject to further appeal with ITAT u/s 253. The appellate order passed by ITAT is subject to further appeal before Hon’ble High Court u/s 260A. The judgment and order passed by Hon’ble High Court is also subject to challenge before Hon’ble Supreme Court. Thus, the appellate order passed by ld. CIT(A) is not a final order, as it is subject to challenge before higher appellate authority.

Thus, Reasons which weighed in the minds of the adjudicating authority while adjudicating appeal on merits of the issues are cardinal as the higher appellate authority can then adjudicate appeal on the issues arising in appeal before them, based on decision and reasoning of ld. CIT(A) in deciding the issues. If the ld. CIT(A) simply dismissed the appeal merely because the assessee did not comply with the notices issued by ld. CIT(A), in limine without adjudicating issues arising in the appeal on merits, such order is not sustainable in the eyes of law keeping in view provisions of Section 250(6), and also higher appellate authorities will be deprived to see what weighed in the mind of the ld. CIT(A) while adjudicating appeal as it will be an order passed without reasoning on the issues on merits. The appellate order of the CIT(A) is clearly in violation of section 250(6) of the Act and liable to be set aside.

The copy of the order is as under:

1733464740 compressed