PARTH CREDIT AND CAPITAL MARKET PRIVATE LIMITED,INDORE vs. ACIT CIRCLE-4(1), INDORE

आदेश/ O R D E R

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first-appeal dated 24.06.2025 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“Ld. CIT(A)”], which in turn arises out of the assessment-order dated 06.12.2019 passed by learned ACIT, Circle-4(1), Indore [“Ld. AO”] u/s 147 r.w.s. 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2012-13, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).

assessee is a private limited company. The AO, on the basis of information

in his possession revealing that the income chargeable to tax has escaped

assessment, issued notice dated 30.03.2019 u/s 148 to assessee to initiate

proceeding of section 147. In response, the assessee filed return declaring

loss. Ultimately, the AO completed assessment u/s 143(3) after making a

total addition of Rs. 1,59,30,000/- u/s 68 on account of unexplained cash

credit. Aggrieved, the assessee filed first-appeal to Ld. CIT(A) but could not

participate in the hearings fixed by Ld. CIT(A). The Ld. CIT(A) did not grant

any relief to assessee. Now, the assessee has come in next appeal before us.

CIT(A) and demonstrated that the Ld. CIT(A) passed ex-parte order

dismissing assessee’s first appeal and merely approving the order of AO,

although due to non-prosecution by assessee on the dates of hearing, but

the order passed by Ld. CIT(A) is against the mandate of section 250(6)

which provides: “The order of the Commissioner (Appeals) disposing of the

appeal shall be in writing and shall state the points for determination, the

decision thereon and the reason for the decision”. He submitted that the

assessee raised substantial grounds, as many as 6 in number, challenging

the legality of the proceedings done by AO as well as the merits of the

additions made by AO which remained unadjudicated by Ld. CIT(A). He

submitted that the non-prosecution by assessee was due to bona fide reason

that the Ld. CIT(A) firstly opened the window for communication on 29.01.2021 during Covid-19 period and thereafter fixed only two hearings

on 02.05.2025 & 09.05.2025 within a very short span of time.

passed by Ld. CIT(A) deserves to be set aside. He submitted that the

assessee is having in his possession, all relevant details and documents and

ready to make an effective representation before Ld. CIT(A). He prayed that

in the interest of justice, one more opportunity be given to assessee by way

of restoring this matter at the level of Ld. CIT(A) for a de novo adjudication.

He acknowledged that the assessee shall definitely make a proper and

effective representation before Ld. CIT(A).

assessee for restoration, submitted that the assessee had remained non-

compliant during the proceedings of first-appeal, which constrained the Ld.

CIT(A) to pass ex-parte order. It was, therefore, submitted that while

restoring the matter, appropriate directions may be issued to ensure strict

compliance by the assessee.

of natural justice and also bearing in mind that no prejudice would be

caused to revenue if the present matter is restored at the level of Ld. CIT(A),

we restore this matter to the file of Ld. CIT(A) for adjudication afresh, at the

risk and responsibility of assessee. The Ld. CIT(A) shall give necessary

opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain

vigilant and ensure participation in the hearings as may be fixed by Ld.

CIT(A) without seeking unnecessary adjournments failing which the Ld.

CIT(A) shall be at liberty to proceed in accordance with law. Ordered

accordingly.

Order pronounced in open court on 08/05/2026

Sd/- Sd/-

(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER

Indore

िदनांक/Dated : 08/05/2026

Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore

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