You did not appear before the CIT(A). Can the appeal simply be dismissed for non-prosecution?
No. Once an appeal is filed the CIT(A) must dispose of it on merits by a written order stating the points for determination, the decision and the reasons. There is no power to dismiss for non-prosecution — and no right to withdraw either.
Decided by the High Court (Bombay High Court — M. S. Sanklecha and A. K. Menon, JJ.) on 2016-04-25, reported as [2016] 69 taxmann.com 407 (Bom) / [2016] 240 Taxman 133 (Bom) / [2017] 297 CTR 614 (Bom); IT Appeal No. 2336 of 2013; AY 2006-07. It bears on section 246A, section 250, section 251 of the Income Tax Act 1961, in Appeals matters.
First appeals dismissed in a paragraph for non-appearance are extremely common, and they leave the assessee with an unreasoned order and a large demand. This is the authority that gets the appeal restored and decided.
Binding within that High Court's jurisdiction. Persuasive elsewhere.
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For assessment year 2006-07 the Assessing Officer imposed a penalty on the assessee under s.271(1)(c) by an order of 8 March 2010. The assessee appealed to the Commissioner (Appeals), but when the appeal was called on nobody appeared in support, and the Commissioner (Appeals) dismissed it for non-prosecution. The Tribunal, by order of 9 May 2013, held that s.250(6) gave him no such power, quashed his order and restored the appeal to him for fresh disposal. The Revenue appealed to the High Court under s.260A on the question whether the Commissioner (Appeals) has power to dismiss an appeal for non-prosecution.
The Revenue's appeal was dismissed. Once an appeal is filed under s.246A the Commissioner (Appeals) is obliged to dispose of it on merits by a written order stating the points for determination, the decision on each and the reasons; the law does not empower him to dismiss it for non-prosecution, and the assessee has no right to withdraw or not press it. The Court held that the question raised gave rise to no substantial question of law and did not entertain it. The practical result was that the appeal stood restored to the Commissioner (Appeals) for fresh disposal on merits under the Tribunal's order, which the High Court left standing.
The Court set out ss.250 and 251 and reasoned from them together (paras 7-8). Section 250(4) lets the Commissioner (Appeals) make or direct further inquiry before disposing of an appeal, and s.250(6) obliges him to dispose of it in writing, stating the points for determination and rendering a reasoned decision on each. Section 251(1)(a) and (b) give him power to confirm, reduce, enhance or annul an assessment or a penalty, and the Explanation to s.251(2) entitles him to consider and decide any matter arising out of the proceedings even if the appellant did not raise it. From that scheme the Court concluded that once an appeal is filed under s.246A the assessee cannot withdraw or not press it as of right. The Court noted that with effect from 1 June 2001 his power to set aside the assessment and send it back to the Assessing Officer was withdrawn, so his powers are co-terminus with those of the Assessing Officer - he can do all that the Assessing Officer could do. Just as the Assessing Officer cannot leave an assessment incomplete by letting the assessee withdraw its return, the Commissioner (Appeals) cannot dispose of the appeal by dismissing it for non-prosecution; ss.251(1)(a) and (b) and the Explanation to s.251(2) require him to apply his mind to all issues arising from the order before him whether or not raised.
Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act.
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Handle my notice → Ask a CA on WhatsAppNo. Once an appeal is filed the CIT(A) must dispose of it on merits by a written order stating the points for determination, the decision and the reasons. There is no power to dismiss for non-prosecution — and no right to withdraw either. This was decided by the High Court (Bombay High Court — M. S. Sanklecha and A. K. Menon, JJ.) and bears on section 246A, section 250, section 251 of the Income Tax Act 1961. It is reported as [2016] 69 taxmann.com 407 (Bom) / [2016] 240 Taxman 133 (Bom) / [2017] 297 CTR 614 (Bom); IT Appeal No. 2336 of 2013; AY 2006-07. First appeals dismissed in a paragraph for non-appearance are extremely common, and they leave the assessee with an unreasoned order and a large demand. This is the authority that gets the appeal restored and decided. If it applies to you, the first step is this: Read the CIT(A) order: if it records no points for determination and no reasons, it does not satisfy s.250(6).
For assessment year 2006-07 the Assessing Officer imposed a penalty on the assessee under s.271(1)(c) by an order of 8 March 2010. The assessee appealed to the Commissioner (Appeals), but when the appeal was called on nobody appeared in support, and the Commissioner (Appeals) dismissed it for non-prosecution. The Tribunal, by order of 9 May 2013, held that s.250(6) gave him no such power, quashed his order and restored the appeal to him for fresh disposal. The Revenue appealed to the High Court under s.260A on the question whether the Commissioner (Appeals) has power to dismiss an appeal for non-prosecution. The matter was decided on 2016-04-25 by the High Court (Bombay High Court — M. S. Sanklecha and A. K. Menon, JJ.). On those facts the High Court held as follows. The Revenue's appeal was dismissed. Once an appeal is filed under s.246A the Commissioner (Appeals) is obliged to dispose of it on merits by a written order stating the points for determination, the decision on each and the reasons; the law does not empower him to dismiss it for non-prosecution, and the assessee has no right to withdraw or not press it. The Court held that the question raised gave rise to no substantial question of law and did not entertain it. The practical result was that the appeal stood restored to the Commissioner (Appeals) for fresh disposal on merits under the Tribunal's order, which the High Court left standing.
The Court set out ss.250 and 251 and reasoned from them together (paras 7-8). Section 250(4) lets the Commissioner (Appeals) make or direct further inquiry before disposing of an appeal, and s.250(6) obliges him to dispose of it in writing, stating the points for determination and rendering a reasoned decision on each. Section 251(1)(a) and (b) give him power to confirm, reduce, enhance or annul an assessment or a penalty, and the Explanation to s.251(2) entitles him to consider and decide any matter arising out of the proceedings even if the appellant did not raise it. From that scheme the Court concluded that once an appeal is filed under s.246A the assessee cannot withdraw or not press it as of right. The Court noted that with effect from 1 June 2001 his power to set aside the assessment and send it back to the Assessing Officer was withdrawn, so his powers are co-terminus with those of the Assessing Officer - he can do all that the Assessing Officer could do. Just as the Assessing Officer cannot leave an assessment incomplete by letting the assessee withdraw its return, the Commissioner (Appeals) cannot dispose of the appeal by dismissing it for non-prosecution; ss.251(1)(a) and (b) and the Explanation to s.251(2) require him to apply his mind to all issues arising from the order before him whether or not raised. In the words reproduced by the source cited on this page: "Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act."
It was decided by the High Court on 2016-04-25 and is reported as [2016] 69 taxmann.com 407 (Bom) / [2016] 240 Taxman 133 (Bom) / [2017] 297 CTR 614 (Bom); IT Appeal No. 2336 of 2013; AY 2006-07. Binding within that High Court's jurisdiction. Persuasive elsewhere. A High Court decision binds the assessing officer, the Commissioner (Appeals) and the Income Tax Appellate Tribunal within that state, and is persuasive elsewhere. If your assessment is in a different jurisdiction, check whether your own High Court has taken the same view before relying on it. On section 246A, section 250, section 251, the practical question is whether the facts of your own notice match the facts of this case closely enough for the same rule to apply.
It helps the taxpayer. The Revenue's appeal was dismissed. Once an appeal is filed under s.246A the Commissioner (Appeals) is obliged to dispose of it on merits by a written order stating the points for determination, the decision on each and the reasons; the law does not empower him to dismiss it for non-prosecution, and the assessee has no right to withdraw or not press it. The Court held that the question raised gave rise to no substantial question of law and did not entertain it. The practical result was that the appeal stood restored to the Commissioner (Appeals) for fresh disposal on merits under the Tribunal's order, which the High Court left standing. It arises in Appeals matters, on section 246A, section 250, section 251 of the Income Tax Act 1961, and was decided by Bombay High Court — M. S. Sanklecha and A. K. Menon, JJ.. Before relying on it, read the source linked on this page and check whether it has since been distinguished, overruled or overtaken by an amendment to the Income Tax Act. In practice the steps that follow from it are these. In the ITAT appeal, take the s.250(6) ground squarely — the usual relief is a remand for a decision on merits. Do not treat the remand as a second chance to be absent; the same order will not come twice.
Still good law. Expressly followed in Himat Khandu Patil v ITO, ITA No. 1237/PUN/2026 (ITAT Pune, 17 June 2026), which cited Pr.CIT (Central) v Premkumar Arjundas Luthra (HUF) and ss.250(6)/251 to hold that 'CIT(A) has to decide the appeal on merit and CIT(A) does not have any power to dismiss appeal for non-prosecution', setting aside the dismissal and remanding. No later contrary decision or amendment to ss.250/251 affecting the point was found. That finding was checked against a published source, which is linked on this page, on 2026-08-25. Checking whether an authority still stands matters as much as knowing what it held: a decision may be overruled on one point and survive on another, or the provision it interprets may have been amended since. Read the source and the editor's note on this page before relying on it in a reply to an Assessing Officer or in an appeal.
The particulars are now settled from the report: Bombay High Court, M. S. Sanklecha and A. K. Menon, JJ., IT Appeal No. 2336 of 2013, decided 25 April 2016, assessment year 2006-07, reported at [2016] 69 taxmann.com 407, [2016] 240 Taxman 133 and [2017] 297 CTR 614. Two things to note in use. The underlying order was a penalty under s.271(1)(c), and the ruling is on procedure, not on the penalty. And the Court disposed of the Revenue's appeal on the footing that no substantial question of law arose, after giving its reasons in a single paragraph - so the reasoning is short, and the appeal itself went back to the Commissioner (Appeals) for disposal on merits. High Court — binding in Maharashtra and Goa, persuasive elsewhere. Later treatment of the decision was not established from the report, which carries no citator entry. This library shows the verification state of every entry openly. This entry has not yet been read in full by a chartered accountant. The summary reflects the sources listed on this page. Read the source before you rely on it in a reply to an Assessing Officer or in an appeal before the Commissioner (Appeals) or the Income Tax Appellate Tribunal.
The Revenue's appeal was dismissed. Once an appeal is filed under s.246A the Commissioner (Appeals) is obliged to dispose of it on merits by a written order stating the points for determination, the decision on each and the reasons; the law does not empower him to dismiss it for non-prosecution, and the assessee has no right to withdraw or not press it. The Court held that the question raised gave rise to no substantial question of law and did not entertain it. The practical result was that the appeal stood restored to the Commissioner (Appeals) for fresh disposal on merits under the Tribunal's order, which the High Court left standing.
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