GONDWANA ENGINEERING PRIVATE LIMITED,NAGPUR vs. DCIT/ ACIT, CIRCLE - 1, NAGPUR

ITA 710/NAG/2026Status: DisposedITAT Nagpur15 October 2026AY 2014-154 pages
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What did the Tribunal hold?

The Tribunal acknowledged the assessees' failure to comply before the CIT(A), attributing it to internal disputes among directors/promoters. While deeming this reason insufficient for bonafide non-compliance, the Tribunal restored both appeals to the file of the CIT(A). The CIT(A) is directed to adjudicate all issues afresh and pass a speaking order as per section 250(6) of the Act, providing a reasonable opportunity of being heard to the assessees. The assessees are cautioned against seeking unnecessary adjournments. Costs of Rs. 3,000/- each are imposed on both assessees for non-compliance, to be deposited within 30 days. The effective grounds of appeal are allowed for statistical purposes.

What were the facts?

These appeals concern two private limited companies, GSM Developers Pvt. Ltd. (AY 2017-18) and Gondwana Engineering Pvt. Ltd. (AY 2014-15). For GSM Developers, the assessment order dated 23.12.2019 under section 143(3) of the Income Tax Act, 1961, resulted in an addition of Rs. 13,72,000/- for unexplained investment. For Gondwana Engineering, the assessment order dated 29.03.2022 under sections 147, 144, and 144B led to an addition of Rs. 11,70,000/- for unexplained income. Both assessees appealed to the CIT(A), but failed to make submissions despite multiple opportunities, leading to the dismissal of their appeals. The assessees' counsel cited internal disputes among directors/promoters as the reason for non-compliance.

What were the issues?

1. Whether the appeals should be restored to the file of the CIT(A) for adjudication on merits, given the assessees' failure to comply before the lower appellate authority? (Question of law and fact, turning on principles of natural justice and procedural compliance under the Income Tax Act, 1961). Assessee's contention: The assessees argued that due to internal disputes between directors/promoters, they could not make submissions before the CIT(A), leading to the dismissal of their appeals. They sought one more opportunity to present their case before the CIT(A) with necessary details. Revenue's contention: The Revenue's representative supported the orders of the lower authorities, implying no relief should be granted to the assessees due to their non-compliance.

Which sections of the Income-tax Act were involved?

Section 68,Section 69A,Section 143(3),Section 147,Section 144,Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE SMC BENCH, PUNE

Before: SHRI MANISH BORAD

For Appellant: Shri Hitesh P. Shah, CA
Hearing: 13/10/2026Pronounced: 15/10/2026

Heard together (2 matters)

ITA No. 709/NAG /2026
ITA No. 710/NAG /2026

Read from the judgment's own cause title. This page is filed under one of them.

ITA No.709/NAG/2026 filed by the assessee (GSM Developers Pvt. Ltd.) is directed against the order of ADDL/JCIT (A)-6, Kolkata (for short, “CIT(A)”) dated 12.05.2026 passed u/sec. 250 of the Income Tax Act, 1961 (for short, “Act”) which is arising out of assessment order dated 23.12.2019 passed u/sec. 143(3) of the Act by the ITO, Ward-7(1)(2), Nagpur for the Assessment Year (A.Y.) 2017-18. ITA No.710/NAG/2026 filed by the assessee (Gondwana Engineering Pvt. Ltd.) is directed against the order of National Faceless Appeal Centre, Delhi dated 12.05.2026 passed u/sec. (

The order continues below.

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