SILVEX REALTY PRIVATE LIMITED,RAIGAD, MAHARASHTRA vs. INCOME TAX OFFICER/DCIT (CIRCLE PANVEL), PANVEL, MAHARASHTRA

Facts of the case, in brief, are that the assessee is a partnership firm and filed its return of income on 13.09.2016 declaring loss of Rs.3,78,81,075/-. The case was selected for Scrutiny through CASS. Subsequently, an order u/s.143(3) was passed on 14.12.2018 without making any adjustment to the returned loss. Thereafter, on receipt of credible information from the Deputy Director of Income Tax (Inv.), Kalyan that the assessee had not offered true and correct picture of its receipts for the purpose of taxation for the year under consideration, the case of the assessee was reopened u/s.147 of the Act. Notice u/s.148 of the Act was issued on 31.03.2021. However, the assessee in response to the same did not file any return of income. Subsequently, the statutory notice issued u/s.142(1) of the Act also remained uncompiled with. The Assessing Officer, therefore, completed the assessment u/s.147 r.w.s.144 r.w.s.144B of the Act determining the loss at Rs.3,29,24,630/- as against the assessed loss as per order dated 14.12.2018 at Rs.3,78,81,075/- by making addition of Rs.49,56,444/- being the undisclosed profit embedded in suppressed sales.

Since the assessee did not make any submission before ld.CIT(A)/NFAC, the ld.CIT(A)/NFAC relying on the decision of Hon’ble Supreme Court in the case of CIT Vs. B.N. Bhattacharjee and Another reported in 118 ITR 461 (SC) and the decision of Hon’ble Madhya Pradesh High Court in the case of Estate of Late Tukojirao Holkar Vs. CWT reported in (1997) 223 ITR 480 (MP) dismissed the appeal. While doing so, he also decided the appeal on merit wherein he held that in absence of reconciliation and supporting documentary evidence to establish that such deposits were duly accounted for or represented non-taxable receipts, the action of the Assessing Officer was justified.

Aggrieved with such order of the ld. CIT(A)/NFAC the assessee is in appeal before the Tribunal.

The Ld. counsel for the assessee at the outset submitted that assessee filed various details before the ld.CIT(A)/NFAC on 27.02.2026, however, he has not considered the same and passed the order on 10.03.2026. He submitted that given an opportunity the assessee is in a position to substantiate its case by filing the requisite details.

The ld. Departmental Representative on the other hand heavily relied on the order of the Assessing Officer and the ld.CIT(A)/NFAC.

We have heard the rival arguments made by both the sides and perused the record. It is an admitted fact that due to non-filing of return in response to notice u/s.148 of the Act and non-response to the various statutory notices, the Assessing Officer completed the assessment u/s.147 r.w.s.144 r.w.s.144B of the Act by making addition of Rs.49,56,444/- as undisclosed profit embedded in suppressed sales. We find the ld.CIT(A)/NFAC upheld the action of the Assessing Officer in absence of any submission before him by the assessee despite number of opportunities granted. It is the submission of the ld. Counsel for the assessee that assessee has filed the requisite details on 27.02.2026, however, the ld.CIT(A)/NFAC has not gone through the same and passed the exparte order. It is also his submission that given an opportunity the assessee is in a position to substantiate his case by filing the requisite details. Considering the totality of the facts 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) / NFAC with a direction to grant an opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law. The assessee is also hereby directed to make its submissions before ld.CIT(A)/NFAC on the appointed day without seeking any adjournment under any pretext failing which the ld.CIT(A)/NFAC is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds of appeal raised by the assessee are accordingly allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

The concerned Pr.CIT, Pune

DR, ITAT, ‘SMC’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, ////