SUNMAZE ENTERPRISES,NAVELIM, GOA vs. WARD-1, MARGOA/, MARGAO, GOA

PDF · subscribers
ITA 389/PAN/2025Status: DisposedITAT Panaji18 May 2026AY 2017-183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A)'s order was not a speaking order and lacked proper discussion of facts and submissions. Therefore, the case was restored to the CIT(A) for fresh adjudication on merits after affording an opportunity of hearing.

What were the facts?

The assessee's appeal against the addition of Rs. 45 lakhs for unexplained cash deposits during demonetization was dismissed by the CIT(A) without proper adjudication. The assessee contended that no fair opportunity was granted and the CIT(A)'s order was not speaking.

What were the issues?

Whether the CIT(A) properly adjudicated the appeal on merits and provided a speaking order. Whether the assessee was granted a fair opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PANAJI

Before: HON’BLE MANISH BORAD & HON’BLE PAVAN KUMAR GADALE

For Respondent: Shri Rijula Uniyal - Sr. DR

आदेश / ORDER

PER MANISH BORAD, ACCOUNTANT MEMBER: The captioned appeal at the instance of assessee directed against the order Ld. Commissioner of Income Tax (Appeals) / National faceless Appeal Centre (NFAC) dated 24.09.2025 pertain to A.Y 2017-18 arising out of the assessment order framed u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 27.12.2019.

2.

Though the assessee has raised six grounds of appeal challenging the addition of Rs. 45 lakhs confirmed by ld. CIT(A), but has mainly contended that no fair and proper opportunity has been granted to the assessee and also the order of ld. CIT(A) is not speaking order and the appeal of the 1

ITA 389/PAN/2025 SUNMAZE ENTERPRISES

assessee has been dismissed without examining the facts assessee has been dismissed without examining the facts assessee has been dismissed without examining the facts assessee has been dismissed without examining the facts placed before ld. CIT(A). placed before ld. CIT(A).

3.

At the outset, ld. Counsel for the assessee requested At the outset, ld. Counsel for the assessee requested At the outset, ld. Counsel for the assessee requested to At the outset, ld. Counsel for the assessee requested afford one more opportunity afford one more opportunity to go go before ld. CIT(A) for before ld. CIT(A) for necessary adjudication of the issues raised in the grounds of necessary adjudication of the issues raised in the grounds of necessary adjudication of the issues raised in the grounds of necessary adjudication of the issues raised in the grounds of appeal.

4.

On the other hand ld. DR has not strongly objected to On the other hand ld. DR has not strongly objected to On the other hand ld. DR has not strongly objected to On the other hand ld. DR has not strongly objected to the request made by ld.Counsel for the assessee. the request made by ld.Counsel for the assessee. the request made by ld.Counsel for the assessee.

5.

We have heard the rival contentions and perused the We have heard the rival contentions and perused the We have heard the rival contentions and perused the We have heard the rival contentions and perused the material placed before us. We note that the assessee is a erial placed before us. We note that the assessee is a erial placed before us. We note that the assessee is a erial placed before us. We note that the assessee is a partnership firm and has been incorporated on partnership firm and has been incorporated on partnership firm and has been incorporated on 22.11.201 22.11.2016 and for the first year of its incorporation it has declared and for the first year of its incorporation it has declared and for the first year of its incorporation it has declared and for the first year of its incorporation it has declared income at Rs. 8,17,110/ income at Rs. 8,17,110/- in the e in the e-return furnished on return furnished on 20.06.2017. The assessee fir 20.06.2017. The assessee firm has calculated income u/s m has calculated income u/s m has calculated income u/s 44AD of the Act on the gross turnover / gross receipts at Rs. 4AD of the Act on the gross turnover / gross receipts at Rs. 4AD of the Act on the gross turnover / gross receipts at Rs. 4AD of the Act on the gross turnover / gross receipts at Rs. 96,37,400/-. I . In the assessment carried u/s 143 n the assessment carried u/s 143(3) of the Act (3) of the Act ld. AO has accepted business income but not satisfied with ld. AO has accepted business income but not satisfied with ld. AO has accepted business income but not satisfied with ld. AO has accepted business income but not satisfied with the source of cash deposit of Rs. 45 source of cash deposit of Rs. 45 source of cash deposit of Rs. 45 lakhs deposited during posited during the demonetization period in the bank account of the the demonetization period in the bank account of the the demonetization period in the bank account of the the demonetization period in the bank account of the assessee. Further before the first appellate authority assessee. Further before the first appellate authority assessee. Further before the first appellate authority assessee. Further before the first appellate authority assessee assessee assessee assessee has has has has made made made made detailed detailed detailed detailed submissions submissions submissions submissions stating stating stating stating that that that that impugned addition uncalled for, however ld. CIT(A) has impugned addition uncalled for, however ld. CIT(A) has impugned addition uncalled for, however ld. CIT(A) has impugned addition uncalled for, however ld. CIT(A) has dismissed the assessee’s dismissed the assessee’s appeal merely observing in few lines appeal merely observing in few lines appeal merely observing in few lines reproduced below: reproduced below:

6.4 I find that AO has followed all procedure as per I find that AO has followed all procedure as per I find that AO has followed all procedure as per law law and and given proper o given proper opportunity of hearing which was pportunity of hearing which was not availed. AO, after demonstrati AO, after demonstrating how 69A is applicable has in ng how 69A is applicable has in my my considered view corr considered view correctly applied the same and I ectly applied the same and I see see no no reason reason to differ with ld. AO. to differ with ld. AO. Accordingly AO added back entire sum of Rs. 45,00,000/ Accordingly AO added back entire sum of Rs. 45,00,000/ Accordingly AO added back entire sum of Rs. 45,00,000/- as unexplained money u/s 69A. unexplained money u/s 69A. Under these circumstances, the current appeal of the appellant Under these circumstances, the current appeal of the appellant Under these circumstances, the current appeal of the appellant Under these circumstances, the current appeal of the appellant is liable to be dismissed and accor is liable to be dismissed and accordingly dingly dismissed, dismissed, without without any adjudication on merits. any adjudication on merits.

ITA 389/PAN/2025 SUNMAZE ENTERPRISES

7.

As a result, appeal filed by the appellant against As a result, appeal filed by the appellant against As a result, appeal filed by the appellant against the order order passed u/s 143 passed u/s 143(3) of the IT Act for A.Y 2017 (3) of the IT Act for A.Y 2017-18 is treated as 18 is treated as dismissed. dismissed. 6. We find that the above finding of Ld. CIT( We find that the above finding of Ld. CIT( We find that the above finding of Ld. CIT(A) is general in A) is general in nature and there is no discussion of the facts of the case nor nature and there is no discussion of the facts of the case nor nature and there is no discussion of the facts of the case nor nature and there is no discussion of the facts of the case nor there is any discussion about the submissions filed by the there is any discussion about the submissions filed by the there is any discussion about the submissions filed by the there is any discussion about the submissions filed by the assessee. We find that the order of Ld. CIT(A) is not a assessee. We find that the order of Ld. CIT(A) is not a assessee. We find that the order of Ld. CIT(A) is not a assessee. We find that the order of Ld. CIT(A) is not a speaking order. Hon’ble speaking order. Hon’ble Bon’ble Bombay High Court in the ca Bon’ble Bombay High Court in the case Bon’ble Bombay High Court in the ca of Pr.CIT(Central) Pr.CIT(Central) Pr.CIT(Central) Pr.CIT(Central) Vs. Vs. Vs. Vs. Premkumar Premkumar Premkumar Premkumar Arjundas Arjundas Arjundas Arjundas Luthra Luthra Luthra Luthra (HUF) (HUF) (HUF) (HUF) (Bombay)/[2017] 297 CTR 614 (Bombay) (Bombay)/[2017] 297 CTR 614 (Bombay) (Bombay)/[2017] 297 CTR 614 (Bombay) has held that “ld. CIT(A) / ld. CIT(A) / NFAC is obliged to dispose of the appeal on merits even in a spate NFAC is obliged to dispose of the appeal on merits even in a spate NFAC is obliged to dispose of the appeal on merits even in a spate NFAC is obliged to dispose of the appeal on merits even in a spate order”. In the instant case the assessee had made detailed In the instant case the assessee had made detailed In the instant case the assessee had made detailed In the instant case the assessee had made detailed submissions but still ld. CIT(A) has not adjudicated the issue on but still ld. CIT(A) has not adjudicated the issue on but still ld. CIT(A) has not adjudicated the issue on but still ld. CIT(A) has not adjudicated the issue on merits properly. And these given facts and circumstances we deem merits properly. And these given facts and circumstances we deem merits properly. And these given facts and circumstances we deem merits properly. And these given facts and circumstances we deem it appropriate to restore all the issues raised in the instant appeal to it appropriate to restore all the issues raised in the instant appeal to it appropriate to restore all the issues raised in the instant appeal to it appropriate to restore all the issues raised in the instant appeal to the file of ld. CIT(A) for fresh adjudication. Needless the file of ld. CIT(A) for fresh adjudication. Needless the file of ld. CIT(A) for fresh adjudication. Needless to mention that to mention that ld. CIT(A) shall examine ld. CIT(A) shall examine the issues after affording reasonable the issues after affording reasonable the issues after affording reasonable opportunity of hearing to the assessee. The assessee is also opportunity of hearing to the assessee. The assessee is also opportunity of hearing to the assessee. The assessee is also opportunity of hearing to the assessee. The assessee is also directed to provide latest e directed to provide latest e-mail id and contact details to the id and contact details to the id and contact details to the department for receiving notices to ITBA Portal. A department for receiving notices to ITBA Portal. A department for receiving notices to ITBA Portal. Assessee is also ssessee is also directed to remain vigilant and not to take adjournment unless directed to remain vigilant and not to take adjournment unless directed to remain vigilant and not to take adjournment unless directed to remain vigilant and not to take adjournment unless otherwise require for reasonable cause and should furnish the otherwise require for reasonable cause and should furnish the otherwise require for reasonable cause and should furnish the otherwise require for reasonable cause and should furnish the details called for. Impugned finding of ld. CIT(A) to set aside and details called for. Impugned finding of ld. CIT(A) to set aside and details called for. Impugned finding of ld. CIT(A) to set aside and details called for. Impugned finding of ld. CIT(A) to set aside and effective grounds of appeal are allowed for statistical purposes. effective grounds of appeal are allowed for st effective grounds of appeal are allowed for st

7.

In the result appeal of the assessee is allowed for In the result appeal of the assessee is allowed for In the result appeal of the assessee is allowed for In the result appeal of the assessee is allowed for statistical purposes. statistical purposes.

Order pronounced in the open court on Order pronounced in the open court on Order pronounced in the open court on 20.05.2026.

Sd/- Sd/- PAVAN KUMAR GADALE PAVAN KUMAR GADALE MANISH BORAD JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER Panaji Dated: 20.05.2026 6

More judgments on Section 69A

All 15,297 judgments and leading authorities on Section 69A →

Recent GST High Court judgments

Search GST case law →