Rejected On A Technicality, Never Heard On The Merits
Three income tax appeals were dismissed by the Tribunal as defective. The High Court framed the question as whether that could stand when no hearing on the merits had ever taken place.
The appeals were admitted on the substantial question of whether the Tribunal's order was liable to be set aside because the appellant was not afforded an opportunity of hearing on merits and the appeals were rejected only on technical grounds, by treating them as defective. The Court answered that question in favour of the appellant and against the Revenue, and allowed all three appeals.
- A defect is curable; a dismissal on it is not the same as a decision. That is the distinction the question turns on.
- Three assessment years went together — 2020-21, 2021-22 and 2022-23 — on one common Tribunal order.
- Answered against the Revenue, so the assessee gets the hearing she was denied.
- The route is a substantial question of law, which is what an appeal from the Tribunal to the High Court requires.
- Court
- High Court for the State of Telangana at Hyderabad
- Bench
- Justice P.SAM KOSHY, Justice NARSING RAO NANDIKONDA
- Citation
- ITTA Nos. 157, 158 and 160 of 2026
- Case
- ITTA Nos. 157, 158 and 160 of 2026
- Decided
- 18 August 2026
- Outcome
- Appeals allowed; substantial question answered in favour of the appellant
What happened
The Income Tax Appellate Tribunal disposed of three appeals by a common order in October 2025, covering assessment years 2020-21, 2021-22 and 2022-23.
The appeals were not decided on what they said. They were treated as defective and rejected on that footing.
The question the High Court framed
The appeals were admitted on a single substantial question of law: whether the Tribunal's order was liable to be set aside on the ground that the appellant was not afforded an opportunity of hearing on merits, and that the appeals were rejected only on technical grounds by treating them as defective.
The Court answered that question in favour of the appellant and against the Revenue, and allowed all three appeals accordingly.
Who argued it
Appearances as recorded in the judgment of the Court.
Frequently asked
Can the Tribunal dismiss an appeal for being defective?
Not without affording an opportunity of hearing on the merits, on this judgment. The question was answered against the Revenue.
What happens now?
The appeals were allowed, so the assessee gets the consideration on merits she did not receive.
When a tribunal rejects your appeal as defective
- Distinguish the defect from the merits in the memorandum of appeal; the question of law is framed on that distinction.
- Show what opportunity was or was not given to cure the defect, and when.
- Group the assessment years where a common order covers them, as the Tribunal's order did here.
- Frame a single clean substantial question — the Court admitted on one.
Source. High Court for the State of Telangana at Hyderabad, ITTA Nos. 157, 158 and 160 of 2026, decided 18 August 2026 by Justice P.SAM KOSHY, Justice NARSING RAO NANDIKONDA. This explainer is written from the judgment text as reported.
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