NAYA TOBACCO COMPANY,GUNTUR vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, CENTRAL CIRCLE-1, GUNTUR., GUNTUR

ITA 595/VIZ/2026Status: DisposedITAT Visakhapatnam31 August 2026AY 2023-246 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) dismissed the appeal ex parte for non-compliance without adjudicating on merits. The CIT(A) should have provided an opportunity to the assessee to prove the genuineness of creditors.

What were the facts?

During a search, sundry creditors of Rs. 64,71,961 were noticed. The assessee admitted the entire amount as income under Section 41(1) but later retracted a portion, claiming duress. The AO added the unsubstantiated balance of Rs. 30,16,681 as income.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal ex parte without considering the merits of the case and providing an opportunity to the assessee.

Which sections of the Income-tax Act were involved?

Section 41(1),Section 132,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Pronounced: 31.08.2026

PER MANJUNATHA G., ACCOUNTANT MEMBER :

This appeal is filed by the Assesseeagainst the order of the Commissioner of Income Tax(Appeals)-3 [“Ld.CIT(Appeals)”], Visakhapatnam vide DIN: ITBA/APL/S/250/2025-26/1087559428

1 Naya Tobacco Company (1)dated 18.03.2026 for the Assessment Year 2023-24, arising out of assessment order passed by the AO u/s 143(3) of the Income Tax Act, 1961 (“the Act”)

The order continues below.

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