What did the Tribunal hold?

The Tribunal found that the AO did not wait for the assessee's reply to the show cause notice and did not conduct independent inquiry. The Tribunal set aside the CIT(A)'s order to allow the assessee an opportunity to present all details.

The assessee, a scrap dealer, failed to provide details of purchases to the Assessing Officer (AO) and did not file submissions before the Commissioner of Income Tax (Appeals) (CIT(A)). The AO made an addition for bogus purchases based on GST information, which the CIT(A) upheld.

What were the issues?

Whether the assessment order and the CIT(A)'s order were passed without providing adequate opportunity to the assessee to present their case.

Iqbal Khwaja Hussain Sangam vs Assessment Unit | ITAT Pune 2026

Income Tax Appellate Tribunal, A BEFORE SHRI Dr. DIPAK P. RIPOTE, ACCOUNTANT MEMBER

Before: SHRI Dr. DIPAK P. RIPOTE & SHRI VINAY BHAMORE

For Respondent: Shri. Amol Khairnar, CIT-DR

PER Dr. DIPAK P. RIPOTE, A.M :

This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), (NFAC)[Ld.CIT(A)], passed u/s. 250 for AY 2018-19 on 29-11-2025, emanating from the Assessment Order u/s 143(3) of the Act, dated 23/09/2021.

The Assessee has raised following grounds of appeal :

ITA No498 /PUN/2026

Submission of Ld.AR: Ld.AR for the Assessee submitted that the Assessee could not file details before the CIT(A). The CIT(A) passed ex-parte order. Ld.AR submitted that Assessee may be provided an opportunity to appear before the CIT(A).

Submission of Ld.DR: 4. Ld.Departmental Representative relied on the order of the AO and CIT(A). However he had no objection if the case was set aside to CIT(A).

ITA No498 /PUN/2026

Findings and analysis: We have heard both the parties and perused the records. As per the statement of facts the Assessee is a scrap dealer. He filed return of Income on 31/03/2019 for AY 2018-19 declaring Total Income at Rs.39,05,540/-.

as mentioned in the assessment order . During the scrutiny proceedings the Assessee was asked to file details of Purchases of Rs.27,51,24,439/- in the prescribed format by the Assessing Officer (AO). The Assessee failed to file the details even after providing opportunities. Meanwhile, the AO received information from office of the DG(GST) Pune Zone that assessee has availed Input Tax Credit without receipt of any goods or services in respect of the invoices received from following Vendors: Mascot International KNS Industries P Ltd Sodha International Texmo International Sunil teel India Suresh Steel India Ramco Industries. 5.1 The AO issued show cause notice dated 17/09/2021 posting the case for hearing on 22/09/2021 which is mentioned in paragraph 6 of the Assessment Order. The Assessee failed to file any reply on the specified date. Hence AO passed an assessment order dated 23/09/2021 making addition of Rs.12,51,94,620/- on account of Bogus purchases. 5.2 Aggrieved by the Assessment Order the Assessee filed appeal before the Ld.CIT(A). Ld.CIT(A) issued 5 notices which are mentioned in paragraph 6 of the order. The Assessee failed to file any submission before the Ld.CIT(A). Hence the Ld.CIT(A) upheld the assessment order. 5.3 Aggrieved by the Order of the Ld.CIT(A), the assessee has filed appeal before this Tribunal. The Ld.AR only pleaded that that assessee may be allowed to file all details before the CIT(A) and hence he requested to set aside the order of CIT(A) to CIT(A) . 5.4 The Ld.DR has not objected to setting aside the case to CIT(A). 5.5 In this case the AO during assessment proceedings had issued show cause notice on 17/09/2021 and passed the Assessment Order on 23/09/2021. The AO had merely completed formality of issuing show cause notice, he has not waited for the reply of the Assessee. AO should have at-

ITA No498 /PUN/2026

least issued a reminder to the assessee. The AO has not carried out any independent inquiry merely relied on the report of the office of the DG (GST). Admittedly assessee could not file reply before the CIT(A). In these facts and circumstances of the case in the interest of justice, we set aside the Order of CIT(A) to CIT(A) for de-novo adjudication. The Ld.CIT(A) shall provide opportunity to the assessee. Assesee shall file all the details before Ld.CIT(A) within three effective hearings. In the result the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open Court on 29 May, 2026

Sd/- Sd/- (VINAY BHAMORE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER /Pune; /Dated : 29-05-2026 TNMM

Copy of the Order is forwarded to: 1. / The Appellant 2. / The Respondent 3. The concerned Pr.CIT, Pune 4. A 5. Guard file. / BY ORDER, Assistant Registrar / ITAT, Pune

IQBAL KHWAJA HUSSAIN SANGAM,PUNE vs. ASSESSING OFFICER, PUNE

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