PREMIUM COMPOSTOS INDIA PRIVATE LIMITED,NEW DELHI vs. ASSESSING OFFICER, ASSESSMENT UNIT

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ITA 134/DEL/2026Status: DisposedITAT Delhi12 August 2026AY 2017-185 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) passed an ex-parte order without considering the assessee's submissions. Therefore, the matter was restored to the CIT(A) for a fresh decision after granting a final opportunity to the assessee.

What were the facts?

The assessee filed a return of income declaring Nil income. The Assessing Officer made an addition of Rs. 9,98,000/- under Section 40A(3) for cash transactions. The CIT(A) dismissed the assessee's appeal ex-parte.

What were the issues?

Whether the CIT(A) erred in passing an ex-parte order without considering the assessee's reply and merits of the case.

Which sections of the Income-tax Act were involved?

Section 40A(3),Section 147,Section 144B,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “B”, DELHI

Before: SH. SUDHIR KUMAR & SH. MANISH AGARWAL

For Appellant: Ms. Monalisa, Adv
Hearing: 29/07/2026Pronounced: 12/08/2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”, DELHI

BEFORE SH. SUDHIR KUMAR, JUDICIAL MEMBER AND SH. MANISH AGARWAL, ACCOUNTANT MEMBER

ITA No.134/DEL/2026 Assessment Year: 2017-18 Premium Compostos India Vs. Assessing Officer Private Limited Income Tax Department, Asish Corporate Tower New Delhi Karkardooma Community Centre Karkardooma New Delhi-110092 PAN No. AACCP5349N (APPELLANT) (RESPONDENT)

Appellant by Ms. Monalisa, Adv. Respondent by Sh. Rajesh Kumar Dhanesta, Sr. DR

Date of hearing: 29/07/2026 Date of Pronouncement: 12/08/2026 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-30 New Delhi [hereinafter referred to as “Ld.CIT(A))”] vide order dated 31-10-2025 pertaining to A.Y. 2017-18 arising out the assessment order dated 25-05-2023 u/s.147 r.w.s. 144B of the Income-tax Act, 1961, (in short ‘the Act’).

2.

The assessee raised the following grounds in appeal:- 1. That the appellant prays leave to add, alter, amend any grounds of appeal. 2. That on the facts and circumstances of the case the Ld. CIT(A) has erred in passing an exparte order without considering the reply of the appellant on merits of the case and even not appreciating that in this case there was no deliberate attempt on the part of the appellant to not to, reply to the notices of hearing. 3. That on the facts and circumstances of the case the Ld. CIT(A) has erred in law in impliedly confirming the addition made by the A.O. of Rs.9,98,000/- u/s 40A (3) of the Act. 4.That on the facts and circumstances of the case while confirming the addition made by the Ld. A.O., the Ld. CIT(A) has not considered that there are plausible legal grounds based on the which the assessment order shall stands vitiated without considering the same only placing reliance on the assessment order the addition has been sustained in a mechanical manner. 3. The brief facts of the case are that the assessee filed the return of income for A.Y.2017-18 declaring total income Nil with the current year losses of Rs.2,57,66,444/-. The return of income was processed under section 143(1) of the Act, and observed that the assessee has done cash transaction with during the F.Y.2016-17. Statutory notices were issued

to the assessee and after considering the submission filed by the assessee the Assessing Officer, completed the assessment order after making the addition of Rs. 9,98,000/- and assessed the total loss of Rs.2,47,68,444/-. 4. Aggrieved the order of the ld. AO the assessee preferred the appeal before the Ld. CIT(A) who vide his order dated 31-10-2025 dismissed the appeal of the assessee. Being aggrieved the order of the Ld. CIT(A) the assessee is in appeal before the Tribunal. 5. The Ld. AR of the assessee submitted that the appeal was dismissed without considering the submission filed by the assessee. The Learned authorized representative for Department of Revenue submitted that departmental authorities have passed reasoned orders. The appeal was rightly rejected by the Ld. CIT(A). 6. We have heard the parties and perused the material available on record. It is evident from the order that the appeal was dismissed by exparte order without considering the reply submitted by assessee. 7. Since in the instant case the appeal was decided ex-parte, therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld.

CIT(A) with a direction to grant one final opportunity to the assessee to substantiate its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. CIT(A) and co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court 12.08.2026.

Sd/- Sd/- (MANISH AGARWAL) (SUDHIR KUMAR) ACCOUNTANT MEMBER (JUDICIAL MEMBER) SR BHATTANGAR Date: 12.08.2026 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI

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