What did the Tribunal hold?

The Tribunal, considering the assessee's plea for a lack of proper communication and professional support, decided to grant one more opportunity in the interest of natural justice.

The assessee, a partnership firm dealing in liquor, deposited a significant amount of cash during demonetization. The Assessing Officer added this amount as unexplained investment. The assessee's appeals before the CIT(A) were dismissed ex-parte twice due to non-compliance.

What were the issues?

Whether the assessee should be granted another opportunity to present their case before the CIT(A) after repeated ex-parte dismissals due to communication issues.

Premier Enterprises, Puducherry vs ACIT | ITAT Chennai 2026

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: SHRI GEORGE GEORGE KAND MS. PADMAVATHY.S

For Respondent: Ms. Anitha, Addl.CIT

आदेश / O R D E R

PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short "CIT(A)") passed u/s. 250 r.w.s.254 of the Income Tax Act, 1961 (in short "the Act") dated 23.01.2026 for Assessment Year (AY) 2017-18.

The assessee is a partnership firm engaged in the business of wholesale and retail dealer in Indian-Made Foreign Liquor (IMFL). The assessee filed a return of income for AY 2017-18 on 07.11.2017 declaring a total income of

ITA No.1613/Chny/2026 Premier Enterprises :- 2 -:

Rs.28,12,410/-. The case was selected for scrutiny and the statutory notices were duly served on the assessee. The A.O during the course of assessment proceedings noticed that the assessee has deposited cash amounting to Rs.1,24,40,000/- during the year under consideration and accordingly called on the assessee to furnish the details pertaining to the same. After considering the various details submitted by the assessee, the A.O made an addition of Rs. 1,35,30,500/- as unexplained investment towards cash deposited in SBN during the demonetization period. Aggrieved, the assessee filed further appeal before the CIT(A). The assessee in the first round of appellate proceedings did not respond to various notices issued by the CIT(A) and therefore, the CIT(A) dismissed the appeal ex-parte. The assessee filed further appeal before the Tribunal against the order of the CIT(A), and the coordinate bench vide order dated 28.02.2023 has restored the matter back to the CIT(A) for a denovo consideration. However the assessee during the set aside proceedings also did not respond to the notices and the CIT(A) once again dismissed the appeal exparte. The assessee is in appeal before the Tribunal against the order of the CIT(A) for the second time.

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the email ID to which the notices were sent were not accessed by the assessee and completely relied on its counsel for handling the tax matters. The Ld. AR further submitted that the counsel of the assessee did not provide proper professional support and therefore the assessee could not represent the case properly before the lower authorities. The ld. AR accordingly prayed for one more opportunity. Considering the facts and circumstances peculiar to assessee's case, we are inclined to give one more opportunity to the assessee

ITA No.1613/Chny/2026 Premier Enterprises :- 3 -:

in the interest of natural justice to represent the case properly by producing the required details. Accordingly, we remit the appeal back to the CIT(A) with a direction to call for necessary details and decide the issue in accordance with law. The assessee is required to submit the necessary details as may be called for and cooperate with appellate proceedings. It is ordered accordingly.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 01st day of June, 2026 at Chennai.

Sd/- Sd/- (जॉज� जॉज� के) (पदमावती यस) (Padmavathy.S) (George George K) उपा�� / Vice President लेखा लेखा सद�य लेखा लेखा सद�य सद�य /Accountant Member सद�य चे�नई/Chennai, �दनांक/Dated: 01st June, 2026. EDN, Sr. P.S

आदेश क� �ितिल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकर आयु!/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF

Digitally signed by EJTADA DURGA EJTADA DURGA NARESH NARESH Date: 2026.06.04 17:06:23 +05'30'

PREMIER ENTERPRISES,PUDUCHERRY vs. ACIT, CIRCLE-1, PUDUCHERRY

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments