ARISE STEELS PRIVATE LIMITED,TRICHY vs. DCIT, TRICHY

Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A) on 08.04.2025.

At the outset, we observed that ld.CIT(A) has provided five opportunities to the assessee to appear for hearings as detailed in paragraph 4 of the ld.CIT(A) order to support the appeal of the assessee. However, the assessee chose to be silent and did not respond to any of the notices and hence the ld.CIT(A), NFAC dismissed the appeal filed by the assessee by confirming the order of the AO by passing an order dated 27.11.2025. Aggrieved by the order of the ld.CIT(A), the assessee preferred an appeal before us.

The ld.AR submitted that the ld.AR of the assessee was unwell during the period of appellate proceedings and hence did not respond to the notices issued by the ld.CIT(A). Therefore, the assessee could not participate in the appellate proceedings. In view of the above, the ld.AR prayed that the Tribunal may be pleased to set aside the order of ld.CIT(A) and remit the issues to the file of AO. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the AO to complete the assessment proceedings effectively.

We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed an order by considering the documents submitted by the assessee and the information available with the department and the same has been confirmed by the ld.CIT(A), NFAC due to non-participation of the assessee.

In view of the above and to meet the ends of justice, we set aside the order of ld.CIT(A), since the AO has made an adhoc disallowance of 25% of the entire purchases, the same needs to be verified by the Assessing Officer. Therefore, we are inclined to provide one more opportunity to the assessee by remitting the matter back to the file of AO and direct the AO to denovo frame the assessment order in accordance with law, after providing reasonable opportunity to the assessee. Needless to say, the assessee to be diligent and file written submissions and relevant documents if advised so.

Since we have already adjudicated the appeal of the assessee on merits, nothing survives in the stay application. Accordingly, the stay application stands dismissed as infructuous.

In the result, appeal filed by the assessee is allowed for statistical purposes and stay application of the assessee is dismissed.