VARDHMAN INDUSTRIES,KANPUR vs. DCIT CIRCLE 1(1)(1), KANPUR

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ITA 754/LKW/2024Status: DisposedITAT Lucknow16 April 2026AY 2015-163 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the impugned appellate order and restored the issues to the Assessing Officer for a fresh assessment. This was done to provide the assessee with a reasonable opportunity to present their case.

What were the facts?

The assessee appealed against the CIT(A)'s order for AY 2015-16. The primary contention was that the reassessment proceedings were initiated erroneously and without proper application of mind. The assessee also claimed a lack of reasonable opportunity during the assessment and appellate stages.

What were the issues?

Whether the reassessment proceedings were validly initiated and whether the assessee was provided with a reasonable opportunity to be heard.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 151,Section 151A,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘A’, LUCKNOW

Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRA

For Appellant: Shri Ashish Jaiswal, Adv

PER ANADEE NATH MISSHRA:A.M.

(A) This appeal has been filed by the assessee against the impugned appellate order of learned CIT(A)/National Faceless Appeal Centre (NFAC), Delhi dated 18.10.2024 for the AY 2015-16. The assessee has raised the grounds of appeal which are as under:

“1. That the reopening of assessment u/s 147 of the Income Tax Act, 1961 has been made by the Id.AO erroneously with prejudice and predetermined mind that the income chargeable to tax has escaped from assessment on the reason to believe formed on the basis of Incorrect facts and absence of application of mind as the reason to belief on the basis of which reopening has been made was already subject matter in 143(3) as well as 154 proceeding which has been completely neglected by the Id.AO before

I.T.A. No. 754/Lkw/2024 Assessment Year:2015-16 2

recording reason to belief that the income has escaped assessment for reassessment u/s 147 of the Income Tax Act, 1961.

2.

That the notice issued u/s 148 of the Income Tax Act, 1961 is without lawful sanction as required under the provision of section 151/151A of the Income Tax Act, 1961.

3.

That the notice issued u/s 148 of the Income Tax Act, 1961 is without jurisdiction and the consequent reassessment proceeding and its reassessment order bad in law.

4.

That the reassessment proceeding initiated and reassessment order framed are both bad in law as well as on facts.

5.

That the reassessment proceeding has been initiated and completed without application of mind on the facts of the case resulting in gross violation of natural justice.

6.

That the Id.AO as well as Id.CIT(A) has erred in making addition u/s 69A of the Income Tax Act, 1961 of Rs.4,19,93,412/-.

7.

That the Id.AO as well as Id.CIT(A) has erred in making addition u/s 69A of the Income Tax Act, 1961 of Rs.87,37,753/-.

8.

That the Id.AO as well as Id.CIT(A) has erred in making addition u/s 69A of the Income Tax Act, 1961 of Rs.80,00,000/-

9.

That the Id.CIT(A) has erred in not providing proper and adequate opportunity to the appellant.

10.

That the addition made by the Id.AO and confirmed by the Id.CIT(A) are arbitrary with prejudice and predetermined mind without any basis.”

(B) At the time of hearing, the learned Counsel for the assessee submitted that the assessment order as well as the impugned appellate order pertaining to present appeal have been passed without providing reasonable opportunity to the assessees. Therefore, he submitted, the issues in dispute should be restored back to the Assessing Officer for denovo order. The ld. Departmental

I.T.A. No. 754/Lkw/2024 Assessment Year:2015-16 3

Representative expressed no objection to this. He left the matter to the discretion of the Bench. Both sides have been heard. Materials on record have been perused. In view of the foregoing discussion and in the facts and circumstances of the case, the impugned appellate order is set-aside and the issues in dispute in the present appeal are restored back to the file of the Assessing Officer with the direction to pass denovo assessment order in accordance with law after providing reasonable opportunity to the assessee.

(C) All the grounds of appeal in present appeal are treated as disposed off in accordance with the aforesaid directions. For statistical purposes, the appeal is partly allowed.

(Order was pronounced in the open court on 21/04/2026)

Sd/- Sd/- (KUL BHARAT) (ANADEE NATH MISSHRA) Vice President Accountant Member Date: 21/04/2026 SK, Sr.PS

Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A) Senior Private Secretary Income Tax Appellate Tribunal Lucknow

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