JCIT, (OSD), CIRCLE 1(1), RAIPUR, RAIPUR vs. SHIVALI UDYOG (I) PRIVATE LIMITED, RAIPUR, RAIPUR

At the very outset, it is noted that the Ld. CIT(Appeals)/NFAC had provided relief to the assessee in contravention to Rule 46A(3) of the IT Rules, 1962. That as per facts emanating from Page 3, Para (v) of the Ld. CIT(Appeals)/NFAC’s order, the First Appellate Authority has appreciated various additional evidences and suo-moto provided relief to the assessee without confronting the A.O in terms with Rule 46A(3) of the IT Rules, 1962. For the sake of completeness, the relevant Para (v) of the Ld. CIT(Appeals)/NFAC order is extracted as follows: “(v) For verification of above, we are enclosing following documents for your kind consideration: a. Copy of account of M/s. Prateek Sales and M/s. R.K. Sales in the books of assessee for F.Y.2010-11 in which details of purchase like quantity, rate and the amount is furnished. Details of payment to the above parties along with name of the bank and cheque no. is also furnished (Annex-7). B. Copy of bank statement where the amount paid to M/s. Prateek Sales and M/s. R.K Sales has been highlighted (Annex-8). C. Details of coal consumption along with copy of account of coal purchase, brokerage and commission on coal purchase and transportation charges on coal purchase is enclosed where purchase made from M/s. Prateek Sales and M/s. R.K Sales has been reflected (Annex-9).

Therefore, it is clear that the rights and liabilities of the parties herein has not been substantially adjudicated as per law by the First Appellate Authority. In view thereof, without going into the merits of the matter, we deem it fit and proper to restore the matter to the file of the Ld. CIT(Appeals)/NFAC for compliance with Rule 46A(3) of the IT Rules, 1962 in accordance with principles of natural justice. The assessee shall also respond to the hearing notices from the office of the Ld. CIT(Appeals)/NFAC.

That since the assessee had filed cross objection which is corresponding to the appeal filed by the Revenue and supportive of order of the Ld. CIT(Appeals)/NFAC, therefore, the same is also restored to the file

Before parting, it is also stated that the Ld. Counsel for the assessee had objected to the appeal filed by the Revenue stating that it is below the tax effect and does not fall under any exception, hence not maintainable. We are of the considered view that since the substantive adjudication of the rights and liabilities of the parties herein itself has not been correctly done as per law by the First Appellate Authority, therefore, the question does not arise regarding the issue raised before us by the Ld. Counsel and therefore, as held in the foregoing paras, the matter is restored to the file of the Ld. CIT(Appeals)/NFAC as per aforesaid directions.

That as per above terms, both the appeal of the Revenue and cross objection of the assessee are allowed for statistical purposes.

�वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, रायपुर ब�च, रायपुर / DR, ITAT, Raipur Bench, Raipur. 5. गाड� फ़ाइल / Guard File. आदेशानुसार / BY ORDER, Samira Digitally signed by n Bera, // True Copy // Samiran Bera, Sr. PS, ITAT, Senior Private Secretary Sr. PS, Raipur आयकर अपील�य अ�धकरण, रायपुर / ITAT, Raipur. Date: ITAT, 2026.04.24 15:03:35 Raipur +05'30'