SHRI NARAYANI TOR PRIVATE LIMITED,BHILWARA vs. INCOME TAX OFFICER, WD-1, BHILWARA, BHILWARA

आदेश / ORDER PER MAKARAND VASANT MAHADEOKAR, AM:

This appeal filed by the assessee is directed against the order dated 30.09.2024 passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi[hereinafter referred to as "the CIT(A)"], under section 250 of the Income-tax Act, 1961[hereinafter referred to as "the Act"], for

2 ITA No. 1085/Jodh/2025 Shri Narayani Tor Private Limited the assessment year 2018-19. The impugned appellate order arises from the assessment order dated 25.03.2023 passed under section 147 read with section 144B of the Act.

3 ITA No. 1085/Jodh/2025 Shri Narayani Tor Private Limited assessee came to know of the impugned appellate order only upon physical service of the penalty and demand notices upon its directors. Thereafter, a copy of the order dated 30.09.2024 was obtained and the present appeal was filed. 4. The learned Authorised Representative (AR) reiterated the reasons stated in the condonation petition and the supporting affidavit. It was submitted that the delay was caused by circumstances beyond the control of the assessee and was neither deliberate nor attributable to any lack of bona fides. The learned Departmental Representative (DR) did not raise any objection to the condonation of delay. 5. We have considered the explanation furnished by the assessee and perused the condonation petition and affidavit placed on record. The explanation regarding the financial and operational difficulties faced by the assessee, the locking of its factory premises by the bank, the discontinuation of its business operations and the disruption of its communication facilities has been affirmed on oath. The said explanation has not been controverted by the Revenue. The learned DR has also raised no objection to the condonation of delay. 6. In these circumstances, we are satisfied that the assessee was prevented by sufficient cause from filing the appeal within the prescribed period. Refusal to condone the delay would result in the assessee being denied an effective adjudication of its

4 ITA No. 1085/Jodh/2025 Shri Narayani Tor Private Limited grievance without the underlying controversy being examined after considering its explanation and supporting evidence. We, therefore, condone the delay and admit the appeal for adjudication. 7. Facts in brief are such that the assessee is a company which had filed its return of income declaring nil income under the normal provisions of the Act and income of Rs.3,65,780/- under the provisions relating to Minimum Alternate Tax. The assessment was reopened on the basis of information alleging that the assessee had obtained purchase bills amounting to Rs.84,96,948/- from M/s Sidhi Vinayak Metal & Salt Company Private Limited without actual supply of goods. 8. During the reassessment proceedings, the Assessing Officer issued notices and questionnaires calling upon the assessee to substantiate the purchases. The assessment order records that the assessee furnished certain details, including bank statements, purchase and sales registers, stock register, supplier ledger and e-way bills. The Assessing Officer, however, found the explanation and supporting evidence to be insufficient and treated the purchases of Rs.84,96,948/- as unexplained expenditure under section 69C of the Act. The said amount was brought to tax by applying section 115BBE of the Act. 9. Aggrieved, the assessee preferred an appeal before the learned CIT(A) on 18.04.2023. The learned CIT(A) issued notices

5 ITA No. 1085/Jodh/2025 Shri Narayani Tor Private Limited under section 250 of the Act on different dates. Since there was no compliance by the assessee, the learned CIT(A) proceeded to decide the appeal in the absence of the assessee and confirmed the addition of Rs.84,96,948/- made under section 69C of the Act as well as the application of section 115BBE of the Act. The appeal was accordingly dismissed. 10. Before us, the learned AR submitted that the impugned order had been passed ex parte qua the assessee. The non- compliance occurred because the assessee’s factory had been locked by the bank, the business operations had ceased and its regular communication facilities had been disconnected. It was submitted that the assessee was unable to place its explanation and supporting evidence before the learned CIT(A). A request was, therefore, made that one more effective opportunity be granted to the assessee and the matter be restored to the learned CIT(A) for fresh adjudication on merits. 11. The learned DR relied upon the orders of the authorities below. However, the learned Departmental Representative raised no objection to the matter being restored to the learned CIT(A) for adjudication afresh after granting an opportunity of hearing to the assessee. 12. We have considered the rival submissions and perused the material available on record. It is not in dispute that the impugned appellate order was passed without any representation

6 ITA No. 1085/Jodh/2025 Shri Narayani Tor Private Limited or written submission from the assessee. Though the learned CIT(A) had issued several notices, the explanation furnished by the assessee indicates that, during the relevant period, the assessee was undergoing serious financial and operational difficulties. Its factory premises had been locked by the bank, the business activities had ceased and the normal channels of communication had been disrupted. 13. We further notice that the assessment itself concerns the genuineness of purchases of Rs.84,96,948/-. The determination of this issue necessarily requires examination of the books of account, purchase invoices, stock records, bank statements, transportation documents, e-way bills, supplier accounts and such other evidence as may be relevant. In the absence of representation from the assessee, the learned CIT(A) confirmed the addition primarily on the basis of the assessment order and the material then available on record. The assessee, therefore, did not have an effective opportunity to explain the transactions and place its supporting evidence before the first appellate authority. 14. The right of appeal must be real and effective. At the same time, the assessee is under an obligation to participate in the proceedings and comply with the notices issued by the appellate authority. Considering the exceptional circumstances explained by the assessee, the fact that the impugned order is ex parte qua the assessee, the factual nature of the controversy, and the

7 ITA No. 1085/Jodh/2025 Shri Narayani Tor Private Limited absence of any objection from the learned Departmental Representative, we are of the considered view that the ends of justice would be met by granting one more opportunity to the assessee. 15. Accordingly, without expressing any opinion on the merits of the addition, we set aside the impugned order dated 30.09.2024 and restore the entire appeal to the file of the learned CIT(A). The learned CIT(A) shall decide the grounds raised by the assessee afresh, in accordance with law, after considering the explanation, documentary evidence and submissions that may be filed by the assessee. The learned CIT(A) shall afford a reasonable and effective opportunity of hearing to the assessee and thereafter pass a speaking order dealing with each ground raised before him. 16. The assessee is directed to furnish its correct and functional e-mail address, telephone number and other contact particulars before the learned CIT(A), respond to the notices within the time allowed, and extend full cooperation in the appellate proceedings. The assessee shall not seek adjournment without sufficient cause. In the event of any further unjustified non-compliance, the learned CIT(A) shall be at liberty to decide the appeal in accordance with law on the basis of the material available on record.

8 ITA No. 1085/Jodh/2025 Shri Narayani Tor Private Limited 17. In view of the restoration of the entire appeal, all the grounds raised by the assessee are treated as allowed for statistical purposes.

Order pronounced on 01.09.2026.

Sd/- Sd/- (SAKTIJIT DEY) (MAKARAND VASANT MAHADEOKAR) VICE PRESIDENT ACCOUNTANT MEMBER

Jodhpur, Dated 01.09.2026 ANKIT, PS

आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : अपीलाथी / The Appellant 1. प्रत्यथी / The Respondent. 2. संबंधधत आयकर आयुक्त / The CIT(A) 3. 4. आयकर आयुक्त(अपील) / Concerned CIT धिभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, जोधपुर/ DR, ITAT, Jodhpur 5. 6. गार्ड फाईल / Guard file.

आदेशानुसार/BY ORDER, सत्याधपत प्रधत //True Copy// उि/सहायक िंजीकार ( Asst. Registrar) आयकर अिीिीय अतिकरण, जोधपुर / ITAT, Jodhpur