Businessman Lost Income Tax Appeal Over Non-Compliance Notices; ITAT Restores Matter for Fresh Adjudication

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has given relief to taxpayer Raghunath Balaji, proprietor of M/s G.R.B Enterprises, by setting aside an order passed by the CIT(A) and sending the case back for a fresh decision.

The Tribunal observed that the order of the CIT(A) was passed ex parte in appeal. CIT(A) dismissed the appeal for non-compliance of notices without deciding the issues raised by the taxpayer on merits.

The ITAT noted that as per Section 250(6) of the Income Tax Act, 1961, it is obligatory for the CIT(A) to dispose of the appeal by discussing and adjudicating the grounds raised before him by the appellant. But in the present case the appeal was dismissed on the ground of non-appearance only and the merits of the case were not examined.

The taxpayer was duly represented before the Tribunal and expressed his intention to prosecute the appeal. In this view of the matter, the Bench restored the matter to the file of the CIT(A) for fresh adjudication on merits in the interest of justice, it observed.

Hence, the Tribunal set aside the impugned order dated 13 November 2025 and directed the CIT(A) to reconsider the appeal after giving reasonable opportunity of hearing to the parties. The assessee was further directed to appear in all future hearings and not to default.

Since the matter has been remanded for fresh consideration, the Tribunal did not examine the other grounds raised by the taxpayer at this stage.

As a result, the appeal was allowed for statistical purposes.