K N K HOSPITALITY,AURANGABAD vs. ITO WARD 1(1), AURANGABAD

ITA 1640/PUN/2026Status: DisposedITAT Pune23 September 2026AY 2018-195 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the order of the CIT(A) and remitted the disputed issue back to the file of the CIT(A) for adjudication afresh. The Tribunal acknowledged the assessee's submission that non-compliance with notices was not wilful, citing the closure of the firm and unavailability of staff. Considering the principles of natural justice, the Tribunal decided to grant the assessee one more opportunity to present its case with supporting evidence. The assessee was directed to cooperate in submitting information for an early disposal of the appeal. The grounds of appeal were allowed for statistical purposes.

What were the facts?

The assessee, K N K Hospitality, is in appeal against the order of the CIT(A)/NFAC for Assessment Year 2018-19. The Assessing Officer (AO) initiated reassessment proceedings under Section 147 read with Section 144B of the Income Tax Act, 1961, based on information from the Insight portal regarding substantial cash deposits and withdrawals in the assessee's bank account during FY 2017-18, coupled with the non-filing of the return of income for AY 2018-19. Despite notices under Section 148A(b) and Section 148, the assessee did not respond. The AO made an addition of Rs. 1,55,11,000/- under Section 69A for unexplained money. The CIT(A) confirmed the AO's action, dismissing the assessee's appeal ex-parte due to non-compliance with notices.

What were the issues?

1. Whether the CIT(A) erred in confirming the addition made by the AO under Section 69A of the Income Tax Act, 1961, without providing the assessee with adequate opportunity to present its case? Assessee's Contention: The assessee argued that the non-compliance with notices before the CIT(A) was not deliberate, as the firm was closed and staff were unavailable, leading to missed email notifications. The assessee claimed to have a strong case on merits and sought an opportunity to substantiate its position with material evidence before the lower authorities. Revenue's Contention: The Revenue supported the order of the CIT(A).

Which sections of the Income-tax Act were involved?

Section 69A,Section 250,Section 148A,Section 148,Section 142(1),Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE

Before: SHRI PAVAN KUMAR GADALE & DR. DIPAK P. RIPOTE

Hearing: 23.09.2026Pronounced: 23.09.2026

PER PAVAN KUMAR GADALE, JUDICIAL MEMBER:

The Assessee has filed the appeal against the order of CIT(A)/ NFAC passed u/sec 250 of the Income Tax Act. The assessee has raised the grounds of appeal challenging the ex- parte order of the CIT(A) in sustaining the addition u/sec69A of the Act made by the Assessing Officer .

2.

The brief facts of the case are that, the Income Tax Department based on the specific information as per Risk Management strategy formulated by the CBDT in NMS module of Insight portal find that the assessee has made substantial

The order continues below.

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