SHREEJI DEVELOPERS,AHMEDABAD vs. DEPUTY COMMISSIONER OF I.T., CIRCLE 3(1)(1), AHMEDABAD

This appeal has been preferred by the Assessee against the Order, dated 30/03/2026, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby the Learned CIT(A) had dismissed the appeal against the Assessment Order, dated 28/03/2025 passed under Section 147 of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment year 2020-2021. 2. We have heard both the sides and have perused the material on record.

Assessee is a partnership firm engaged in the business of property development. The assessee has filed its return of income on 18.12.2020 declaring a total income of Rs. 1,90,26,510/-. Assessment Year: 2020-2021

Facts of the case are that appellant SHREEJI DEVELOPERS is a FIRM. Appellant filed its original return of income on 18-12-2020 declaring total income of Rs. 1,90, 1,90,26,510/-. Later information was received regarding accommodation entry transactions of the appellant, as revealed during search action on Swati Group.

On basis of the information, case was reopened u/s 147 of the Act and notice u/s 148 was issued on 31.03.2024. Statutory notices were issued on various dates. Appellant responded to some notices. After examining facts of the case and taking on record submissions of the appellant, AO completed the assessment u/s 147 of the Act assessing total income at Rs. 1,95,66,203/- after making addition of Rs.5,39,693/- to the returned income of Rs.1,90,26,510/-. Addition was made on account of disallowance of interest expense of Rs.5,39,693/- on bogus unsecured loan.

On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in dismissing the appeal without considering that the assessee had duly filed adjournment requests on 13.03.2026 and 20.03.2026, which were not taken into account, and proceeded to pass the order, thereby denying adequate and effective opportunity of being heard and violating the principles of natural justice.”

It emerges that the appeal preferred by the Assessee was dismissed by the Learned CIT(A) observing that no response was received from the Assessee. It has been specifically recorded in the impugned order that the Assessee was granted opportunities during the appellate proceedings by way of issuance of notice of hearing dated 09/03/2026 and 16/03/2026. Since the Assessee had not responded to the said notices, the Learned CIT(A) concluded that the Assessee had no evidence/expedition to offer in support of the grounds raised in the appeal. The Assessee is placed before us the adjournment requests filed online before the Learned CIT(A) on 13/03/2026 and 20/03/2026. We find that the impugned order does not make reference to the same. Therefore, we deem it appropriate to set-aside the impugned Order, dated 30/03/2026 passed by Learned CIT(A) and restore the appeal back to the file of Learned CIT(A) with the directions to adjudicate the grounds raised by the Assessee afresh after granting the Assessee a reasonable opportunity of being heard. The Assessee is directed file relevant documents, details and submission before the Learned CIT(A) without

In terms of above the present appeal preferred by the Assessee is partly allowed.

""यथ"/ The Respondent. 3. संबंिधतआयकरआयु"/ Concerned CIT 4. आयकरआयु"(अपील) / The CIT(A) 5. िवभागीय"ितिनिध, आयकरअपीलीयअिधकरण/ DR, ITAT, 6. गाड"फाईल /Guard file. आदेशानुसार/BY ORDER, उप/सहायकपंजीकार (Dy./Asstt.