BHAVANI DEVELOPERS,NAGPUR vs. ITO WARD 1(1), NAGPUR

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ITA 96/NAG/2026Status: DisposedITAT Patna13 April 2026AY 2011-20124 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, following the principles of natural justice and a Bombay High Court judgment, decided to provide the assessee with one final opportunity to present their case. The matter was remitted back to the CIT(A) for fresh adjudication.

What were the facts?

The assessee's appeal was dismissed by the CIT(A) in limine due to non-compliance. The assessee claimed that the non-compliance was due to the death of their brother's wife and that notices went unnoticed. This was the second round of litigation before the ITAT.

What were the issues?

Whether the CIT(A) rightly dismissed the appeal without providing a reasonable opportunity to be heard, especially in light of the circumstances presented by the assessee.

Which sections of the Income-tax Act were involved?

Section 153C,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR ‘SMC’ BENCH, NAGPUR

Before: DR.MANISH BORAD

For Appellant: Shri Manoj G. Moryani
For Respondent: Shri Pankaj Kumar
Hearing: 17.03.2026Pronounced: 13.04.2026

The captioned appeal at the instance of assessee pertaining to A.Y. 2011-12 is directed against the order dated 04.12.2025 framed by CIT(A)-3, nagpur arising out of Assessment Order dated 27.02.2015 passed u/s.153C r.w.s.143(3) of the Income Tax Act, 1961 (in short ‘the Act’).

2.

At the outset ld. Counsel for the assessee submitted that this is the second round of litigation before this Tribunal as the Tribunal vide order dated 30.04.2024 has restored the matter to the file of ld.CIT(A) afresh. However, assessee’s case could not be represented before ld.CIT(A) owing to death of assessee’s brother’s wife on 09.10.2025 and the notices dated 15.10.2025 04.11.2025 went unnoticed, resulting into compliance and consequent dismissal of assessee’s appeal in limine. Ld. Counsel therefore

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prayed for granting a final opportunity to the assessee to substantiate its case.

3.

On the other hand, ld. DR supported the order of ld.CIT(A) and submitted that assessee failed to avail the opportunities granted to it therefore the assessee’s case deserves dismissal.

4.

I have heard the rival contentions and perused the record placed before me. This is second round of proceedings before this Tribunal in as much as the case of the assessee was remitted back to the file of ld.CIT(A) for afresh adjudication. However, on perusal of the impugned order, it is evident that on couple of occasions assessee sought adjournment and on other occasions there is no response from the side of assessee. Before me, assessee is claiming that owing to death of assessee’s brother’s wife there is non compliance and further the assessee sought for impounded material which is yet to be supplied.

5.

I find that Hon'ble High Court of Bombay in the case of Vijay Shrinivasrao Kulkarni Vs. ITAT (2025) 171 taxmann.com 696 (Bom.), dated 04.02.2025 has held that as per the principles of natural justice the right to be heard is to be provided and if the order of ld.CIT(A)/NFAC is an exparte order, the only recourse is to remand the matter back to the file of the Ld. CIT(Appeals)/NFAC for fresh adjudication in terms with the principles of natural justice providing one final opportunity to the assessee.

6.

Considering the above judicial precedent and the peculiar facts of the case, I am of the considered view that the 3 Bhavani Developers

assessee’s case deserves one more opportunity. In view thereof, the issues raised in the instant appeal are being remitted back to the file of ld.CIT(A) for denovo adjudication. Needless to mention that ld.CIT(A) in the set aside proceedings shall provide reasonable opportunity of hearing to the assessee and consider the documents/evidences to be filed by the assessee. Assessee is directed to update email and contact details on the ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A) shall be free to proceed in accordance with law. Findings of the CIT(A)/NFAC are set aside and Grounds of appeal raised by the assessee are allowed for statistical purposes.

7.

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

Order pronounced on this 13th day of April, 2026. (MANISH BORAD) ACCOUNTANT MEMBER Nagpur/ दिन ांक / Dated : 13th April, 2026. Satish Satish Kumar Madishetty Date: 2026.04.15 16:21:32 +05'30'

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आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order forwarded to : अपील र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

2.3.

The Pr. CIT concerned. विभ गीय प्रतितनधि, आयकर अपीलीय अधिकरण, न गपुर SMC बेंच, 4. न गपुर / DR, ITAT, “Nagpur SMC Bench, Nagpur ग र्ड फ़ इल / Guard File. 5. आिेश नुस र / BY ORDER,

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