VENUS NIRMAN PVT. LTD.,LUCKNOW vs. INCOME TAX OFFICER-1(5), RANGE-1, LUCKNOW

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ITA 651/LKW/2025Status: DisposedITAT Lucknow21 April 2026AY 2014-153 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the impugned appellate order and restored the issues to the Assessing Officer for a denovo assessment. This was due to the lack of reasonable opportunity provided to the assessee.

What were the facts?

The assessee appealed against an order of the CIT(A) for AY 2014-15. The appeal was filed beyond the prescribed time limit, but the delay was condoned. The Tribunal noted that both the assessment order and the CIT(A)'s order were passed without providing a reasonable opportunity to the assessee.

What were the issues?

Whether additions made by the AO under Section 68 for unsecured loans, income from other sources, and advances were justified. Whether the assessee was provided with a reasonable opportunity of being heard.

Which sections of the Income-tax Act were involved?

Section 68,Section 253(3),Section 253(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘A’, LUCKNOW

Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRA

For Appellant: Shri Mahendra Kumar, FCA

PER ANADEE NATH MISSHRA:A.M.

(A) This appeal has been filed by the assessee against the impugned appellate order of learned CIT(A)-1, Lucknow dated 23.09.2020 for the AY 2014-15. The assessee has raised the grounds of appeals are as under:

“1. Because the Ld. CIT(A), under the facts, law and circumstances of the case, has erred in dismissing the ground of appeal challenging addition of Rs. 5,00,00,000/- made u/s 68 disallowing unsecured loan taken from M/s Winco Construction and Developers Pvt Ltd amounting to Rs. 2,00,00,000/- and unsecured loan taken from M/s Virgin Builders Pvt Ltd amounting to Rs. 3,00,00,000/- for alleged failure to establish credit worthiness of these creditors and genuineness of the transaction. The dismissal is on account of

I.T.A. No. 651/Lkw/2025 Assessment Year:2014-15 2

conjectures and surmises without any concrete basis therefore addition of Rs. 5,00,00,000/- is liable to be deleted.

2.

Because the Ld. CIT(A), under the facts, law and circumstances of the case, has erred in dismissing the ground of appeal challenging addition of Rs. 1,77,81,899/- made by the AO in respect of income shown by the appellant under the head Income From Other Sources in Financial Statements. The dismissal is on account of misinterpretation of the income of the appellant, without any concrete basis therefore addition of Rs. 1,77,81,899/- is liable to be deleted.

3.

Because the Ld. CIT(A), under the facts, law and circumstances of the case, has erred in dismissing the ground of appeal challenging addition of Rs. 14,00,000/- made by the AO in respect of advancing of loan to M/s Winco Construction & Developers Pvt Ltd duly shown by the appellant in assets in Financial Statements. The dismissal is on account of assessing asset as income of the appellant, based on misconception and therefore addition of Rs. 14,00,000/- is liable to be deleted.”

(B) The present appeal has been filed beyond the time prescribed under section 253(3) of the Income Tax Act, 1961 (the Act). The assessee has filed application for condonation of delay in filing of the present appeal. The learned Departmental Representative expressed no objection to condonation of delay, as requested by the appellant assessee. In view of the reasons stated in the application, the delay in filing of the appeal is condoned under section 253(5) of the Act and the appeal is admitted.

(C) On perusal of records, it is found that the assessment order as well as the impugned appellate order pertaining to present appeal has been passed without providing reasonable opportunity to the assessees. The ld. Departmental Representative expressed no objection to this. He left the matter to the discretion of the Bench. Both sides have been heard, materials on record have been perused. In view of the foregoing discussion and in the facts and

I.T.A. No. 651/Lkw/2025 Assessment Year:2014-15 3

circumstances of the case, the impugned appellate order is set-aside and the issues in dispute in the present appeal are restored back to the file of the Assessing Officer with the direction to pass denovo assessment order in accordance with law after providing reasonable opportunity to the assessee.

(D) All the grounds of appeal in present appeal are treated as disposed off in accordance with the aforesaid directions. For statistical purposes, the appeal is partly allowed.

(Order was pronounced in the open court on 21/04/2026)

Sd/- Sd/- (KUL BHARAT) (ANADEE NATH MISSHRA) Vice President Accountant Member Date: 21/04/2026 SK, Sr.PS

Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A) Senior Private Secretary Income Tax Appellate Tribunal Lucknow

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