APEX EXPLOSIVES PRIVATE LIMITED,NAGPUR vs. DCIT CIRCLE 2 NAGPUR, NAGPUR

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ITA 431/NAG/2026Status: DisposedITAT Nagpur10 June 2026AY 2008-094 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the NFAC's order was passed without proper service of notices. Therefore, the matter was restored to the AO for fresh adjudication on merits and legal issues, ensuring the assessee is heard.

What were the facts?

The assessee's appeal challenges an ex parte order passed by the NFAC, citing notices sent to an incorrect email ID. The assessment was based on land sale being treated as a capital asset, with the assessee now claiming it's agricultural land.

What were the issues?

Whether the NFAC order was passed ex parte due to improper service of notices and whether the land sold was agricultural or a capital asset.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH :: NAGPUR

For Appellant: Ms. Shikha Loya, CA
For Respondent: Shri Surjit Kumar Saha, Sr.DR
Hearing: 09.06.2026Pronounced: 10.06.2026

PER KHETTRA MOHAN ROY, AM:

This appeal filed by the assessee is directed against the order of National Faceless Appeal Centre, Delhi, (for short, “CIT(A)”), dated 25/02/2026 passed under section 250 of the Income Tax Act, 1961 (for short, “Act”) which is emanating from the assessment order dated 21.03.2016

ITA No. 431/NAG/2026 (Apex Explosives Pvt. Ltd.) passed u/s. 143(3) r.w.s. 147 of the Act by the ACIT, Circle-2, Nagpur for the Assessment Year (AY) 2008-09.

2.

On hearing both sides, we find that, apart from the other grounds raised on merits, the assessee has also raised Ground No. 3 challenging the order of the NFAC on the ground that it was passed ex parte. Learned counsel appearing on behalf of the assessee has drawn our attention to the fact that notices were issued on an incorrect e-mail ID. Though, Ld. Departmental Representative (DR), has relied on the impugned order, we find that in the impugned order of NFAC in para 4, there is a mention of notices issued, however, the mode of services and satisfaction of notices being served on the assessee are not available. At the same time, we find that assessment was completed on the basis of considering the sale of land to be a capital asset, for which, before us, certain additional evidences have been relied claiming that the land is agriculture in nature, however, the same requires verification being a question of fact and law.

ITA No. 431/NAG/2026 (Apex Explosives Pvt. Ltd.) 3. In the light of the aforesaid circumstances, we consider it an appropriate case to restore the issues to the file of Ld. AO for denovo adjudication on merits as well as on legal issues. The Ld. AO shall grant the assessee an adequate opportunity of being heard and thereafter pass an order afresh in accordance with law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes.

4.

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

Order pronounced in open Court on 10.06.2026

sd/- sd/- ANUBHAV SHARMA KHETTRA MOHAN ROY JUDICIAL MEMBER ACCOUNTANT MEMBER Nagpur: Dated: 10/06/2026 vr/-

ITA No. 431/NAG/2026 (Apex Explosives Pvt. Ltd.) Copy to: 1. The Assessee 2. The Revenue 3. The Pr.CIT concerned. 4. The DR, ITAT, Nagpur 5. Guard file. By order Vukkem Digitally signed by Vukkem Rambabu Rambabu Date: 2026.06.11 10:21:00 +05'30' Senior Private Secretary ITAT, Nagpur

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