BANANA LEAF GRILLZN BBQ,PUDUCHERRY vs. INCOME TAX OFFICER, WARD 1, PUDUCHERRY, PUDUCHERRY

आदेश / O R D E R

PER MANU KUMAR GIRI, JM:

The captioned appeal filed by the Assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi, [CIT(A)] dated 10.12.2025 for Assessment Year 2020-21. 2. The assessee is a Partnership Firm and did not file return of income of the year under consideration. The assessee had made total sales reported under GSTR-3B amounting to Rs.1,88,58,267/- and total sales reported under GSTR-1 amounting to Rs.17,43,160/- during the year under consideration. When there was no response of

ITA No 632/Chny/2026 (AY 2020-21) Banana Leaf Grillzn BBQ Vs ITO, W(1) Puducherry :: 2 :: the notices issued during the assessment proceedings, the AO completed ex-parte assessment u/s.147 r.w.s.144 r.w.s 144B of the Act and made addition the total sales of Rs.1,88,58,267/- (taking higher value of two figures of Rs. 1,88,58,267/- reported in GSTR- 3B &17,43,160/- reported in GSTR-1) is treated as total gross receipts from business activities and estimated the profit from such business at 12.50% of total sales which is amount Rs. 23,57,283/- (1,88,58,267*12.5%) and the same is added back to the total income of the assessee. 3. Being aggrieved with the order passed by the AO, the assessee preferred an appeal before the Ld. CIT(A), however, the Ld. CIT(A), vide its order dated 10.12.2025 dismissed the appeal of the assessee on account of delay of 217 days in filing the appeal in limine. 4. Being aggrieved with the order passed by the Ld CIT(A), the assessee preferred an appeal before this Tribunal and sought an opportunity to file the relevant/necessary documents before the AO as the assessment is ex-parte. 5. Despite service of notice, none has chosen to appear before this Tribunal. However, the assessee in his grounds claims that AO passed an exparte impugned order without giving proper opportunity of hearing whereby the assessee failed to produce relevant documents. 6. The ld. Departmental Representative (DR), on the other hand, supported the order of the ld. CIT(A) and prayed for dismissal of the appeal. 7. We have heard the ld. DR and perused the material available on record. It is noticed that the assessment in the present case was completed ex-parte u/s 147 r.w.s. 144 and 144B of the Act since

ITA No 632/Chny/2026 (AY 2020-21) Banana Leaf Grillzn BBQ Vs ITO, W(1) Puducherry :: 3 :: none appeared on behalf of the assessee before the Assessing Officer during the assessment proceedings. The Assessing Officer, on the basis of information available from GST returns, treated the sales reported in GSTR-3B amounting to Rs.1,88,58,267/- as total gross receipts and estimated profit thereon @12.5%, thereby making an addition of Rs.23,57,283/- to the income of the assessee. It is further observed that the appeal filed before the ld. CIT(A) came to be dismissed in limine on account of delay of 217 days in filing the appeal and, therefore, the issues involved in the assessment order were not adjudicated on merits. 8. Before us, though none appeared on behalf of the assessee at the time of hearing, the assessee in the grounds of appeal has contended that sufficient opportunity was not effectively availed during the assessment proceedings and the assessment order came to be passed ex-parte without considering the relevant documentary evidences. The assessee has also sought one more opportunity to substantiate its case before the Assessing Officer. Considering the entirety of facts and circumstances of the case, particularly the fact that the assessment has been framed ex-parte and the issues have not been examined on merits either by the Assessing Officer or by the ld. CIT(A), we are of the considered opinion that, in the interest of substantial justice, one more opportunity deserves to be granted to the assessee to present its case and file relevant documentary evidences before the Assessing Officer. Accordingly, without expressing any opinion on the merits of the additions made by the Assessing Officer, we set aside the impugned orders of the authorities below and restore the matter back to the file of the Assessing Officer for de novo assessment in accordance with law. The Assessing Officer shall afford adequate and reasonable

ITA No 632/Chny/2026 (AY 2020-21) Banana Leaf Grillzn BBQ Vs ITO, W(1) Puducherry :: 4 :: opportunity of being heard to the assessee and shall decide the matter afresh after considering the submissions and evidences that may be filed by the assessee. The assessee is also directed to promptly cooperate in the set-aside proceedings and shall not seek unnecessary adjournments. In case of failure on the part of the assessee to comply with the notices issued by the Assessing Officer, the Assessing Officer shall be at liberty to proceed in accordance with law. 9. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on the 01st day of June 2026, in Chennai.

Sd/- Sd/- (इंतूरी रामा राव) (मनु कुमार िग�र) (INTURI RAMA RAO) (MANU KUMAR GIRI) लेखा सद*य/ACCOUNTANT MEMBER �या�यक सद*य/JUDICIAL MEMBER

चे�नई/Chennai, +दनांक/Dated: 01st June, 2026. SNDP, Sr. PS

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