KUNJA CHOUHAN,MANGALDOI vs. ITO- WARD-1, TEZPUR , TEZPUR

ITA 425/GTY/2025Status: DisposedITAT Guwahati06 October 2026AY 2013-144 pages
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What did the Tribunal hold?

The Tribunal noted that the case was re-opened under Section 147 of the Act due to escaped income, and notices under Section 148 and other statutory notices were issued. The assessee did not respond to these notices, nor did they respond before the CIT(A). The assessee's counsel submitted that the profit estimated by the AO at 8% on gross sale receipts was very high, as the actual profit margin in the petroleum product business is only 1% to 2%. Considering the facts, the prayer of the assessee's counsel, and in the interest of justice, the Tribunal decided to remit the issue back to the file of the CIT(A) for a fresh decision. The assessee is directed to substantiate their case with cogent documents and avoid unnecessary adjournments. No further leniency will be granted if the assessee fails to comply.

What were the facts?

The assessee, Kunja Chouhan, is an appellant before the Income Tax Appellate Tribunal (ITAT) challenging an order passed by the National Faceless Appeal Centre, Delhi (CIT(A)). The assessment year in question is 2013-2014. The original assessment order was passed by the Assessing Officer (AO) under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961. The case was re-opened due to information that the assessee, a non-filer, had substantial credits in his bank account. A notice under Section 148 was issued on 26.03.2021. Despite notices, the assessee did not comply. A show cause notice was issued, and a reply was furnished. The AO noted cash deposits of Rs. 2,45,79,300/-, treated this as gross sale receipts, and assessed income at 8% thereof, amounting to Rs. 19,66,344/- as business income. The assessee appealed to the CIT(A), who also issued notices without response and dismissed the appeal, relying on various judgments.

What were the issues?

1. Whether the ITAT should grant the assessee a fresh opportunity to present evidence regarding the profit margin on petroleum product sales, given the AO's assessment at 8% which the assessee claims is impossibly high for their business. Assessee's contention: The assessee's counsel argued that the assessee earns only 1% to 2% income on the sale of petroleum products, making the AO's assessment of 8% on turnover impossible. The counsel requested one more chance to substantiate the case with cogent documents. Revenue's contention: The learned Senior Departmental Representative relied on the orders of the lower authorities. He stated that the assessee was given ample opportunities to substantiate their case before the AO and the CIT(A) but continuously disregarded the notices issued by both authorities.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 148,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, GUWAHATI BENCH, GUWAHATI

For Appellant: Shri Chaman Bathia, CA
For Respondent: Shri Santosh Kumar Karnani, Sr. DR
Hearing: 16.09.2026Pronounced: 06.10.2026

PER LAXMI PRASAD SAHU, AM: This appeal is filed by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre, Delhi [hereinafter referred to as ‘the ld. CIT(A)’], dated 23.10.2025 arising out of assessment order passed by the Assessing Officer (In short, ‘the AO’) u/s 147 r.w.s. 144 r.w.s. 144B of the Act, dated 30.03.2022 as per the grounds taken .

2 ITA No.425/Gty/2025/AY 2013-14

2.

Briefly stated the facts of the case are that the assessee is a non-filer. As per information with the Income-tax Department that the assessee had substantial credits during the year in his bank ac

The order continues below.

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