AVDHOOTLAXMI FIREWORKS,NASHIK vs. THE INCOME TAX OFFICER, WARD 1, MALEGAON, NASHIK

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.1487/PUN/2026 Assessment years: 2020-21 Avdhootlaxmi Fireworks ITO, Ward-1, Gala No. 6/7, Plot No. 20/21, Balaji Malegaon commercial Complex, Satana Naka, Vs. AP, Post & AMP; Tal-Malegaon, Dist. Nashik- 423203 PAN: ABJFA6333Q (Appellant) (Respondent) Assessee by : Shri Sanjeet Mutha, (Virtual) Department by : Shri Pawan Bharti, (Virtual) Date of hearing : 22-06-2026 Date of pronouncement : 24-06-2026 O R D E R PER R.K. PANDA, VICE PRESIDENT :-

This appeal filed by the assessee is directed against the ex-parte order dated 13th February, 2026 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2020-21. 2. Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. CIT(A)/ NFAC dismissing the appeal filed by the assessee for non-prosecution and thereby sustaining the addition of Rs.4,62,064/- made by the Assessing Officer in the order passed u/s 147 of the I.T. Act, 1961.

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of the Act based on the information received from the DDIT (Investigation), Ahmedabad, followed by a search and survey conducted on 16.11.2023 in the case of Ambica Fireworks Group. During the search, certain “Rojmels” (daily cash books) were seized, which allegedly reflected unaccounted cash transactions between the assessee and M/s Ambica Ashish Tradelinke LLP. On the basis of this, it was alleged that income amounting to Rs.4,62,064/- had escaped assessment. Accordingly, after obtaining necessary approval, the case of the assessee was reopened and notice u/s 148 of the I.T. Act was issued and served on the assessee, in compliance to which the assessee filed his return of income declaring same income. Subsequently, the Assessing Officer issued notices u/s 143(2) and 142(1) of the Act along with a questionnaire, in response to which the assessee filed his reply. Rejecting the various explanations given by the assessee the Assessing Officer made addition of Rs. 4,62,064/- to the total income of the assessee and accordingly, determined the total income of Rs. 5,83,234/-. 4. Since, assessee did not make any submission before the Ld. CIT(A)/ NFAC, despite three opportunities, the Ld. CIT(A)/NFAC in the ex-parte order passed by him dismissed the appeal. 5. Aggrieved with such order of the Ld. CIT(A)/ NFAC, the assessee filed the appeal before the Tribunal. 6. The Ld. counsel for the assessee referring to the Form No. 35 filed before the Ld. CIT(A)/ NFAC submitted that assessee has requested for physical copy of notice. However, no such notices were received by the assessee in physical mode for which the assessee could not come to know the dates of hearing. Accordingly,

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there was no compliance before the Ld. CIT(A)/ NFAC. He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate his case by filing the requisite details. 7. The Ld. Departmental Representative, on the other hand, submitted that despite three opportunities granted by the Ld. CIT(A)/ NFAC, there was non- compliance by the assessee for which Ld. CIT(A) was constrained to pass the ex- parte order and dismissing the appeal of the assessee. 8. We have heard the rival arguments made by both the sides, perused the order of the Assessing Officer and the Ld. CIT(A)/ NFAC and the paper book filed on behalf of the assessee. It is an admitted fact that due to non-compliance to the three statutory notices issued by the office of the Ld. CIT(A)/ NFAC, there was non- compliance from the side of the assessee for which the Ld. CIT(A)/ NFAC was constrained to pass the ex-parte order dismissing the appeal of the assessee. It is the submission of the ld. counsel for the assessee that the assessee has opted for receipt of physical notices instead of through e-mail. Since the notices were not received by the assessee physically, the assessee could not know the dates of hearing for which, there was non-compliance before the Ld. CIT(A)/ NFAC. It is also his submission that given an opportunity, the assessee is in a position to substantiate his case by filing the requisite details before the Ld. CIT(A)/ NFAC. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(A)/ NFAC with the direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law. The assessee is

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also hereby directed to respond to the notices issued by the office of the Ld. CIT(A)/ NFAC without seeking any adjournment under any pretext failing which the Ld. CIT(A)/ NFAC is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purpose. 9. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open Court on 24th June, 2026. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 24th June, 2026 Abhishek Abhishek Digitally signed by Abhishek Mohan Mohan Date: 2026.06.24 17:33:09 +05'30' आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; प्रत्यर्थी / The Respondent 2. 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘SMC’ Bench, Pune ग र्ड फ ईल / Guard file. 5. //True Copy// आदेशानुसार/ BY ORDER,

Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune

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S.No. Details Date Initials Designation 1 Draft dictated on 23.06.2026 Sr. PS/PS 2 Draft placed before author 23.06.2026 Sr. PS/PS Draft proposed & placed before 3 JM/AM the Second Member Draft discussed/approved by 4 AM/AM Second Member Approved Draft comes to the 5 Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS Date on which the file goes to 9 the Office Superintendent Date on which file goes to the 10 A.R. 11 Date of Dispatch of order