PARAS SEEDS CORPORATION,HIMATNAGAR, GUJARAT vs. ITO WARD - 1, HIMATNAGAR, HIMATNAGAR

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ITA 2967/AHD/2026Status: DisposedITAT Ahmedabad13 October 2026AY 2017-183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that in the interest of proper disposal of the appeal, especially given the substantial addition, it was necessary for all relevant details to be brought on record and examined. Consequently, the Tribunal set aside the order of the CIT(A) and restored the matter for fresh consideration. The assessee was directed to forthwith file all relevant details and documents without seeking unnecessary adjournments or failing to comply with notices. The appeal was allowed for statistical purposes. The principle is that where a substantial addition is made and the assessee seeks to present crucial evidence not previously filed, the appellate authority should provide an opportunity for such evidence to be considered, particularly if it aids in the proper disposal of the case.

What were the facts?

The assessee, Paras Seeds Corporation, is in appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated June 17, 2026, for Assessment Year 2017-18. The assessment was made under Section 147 read with Section 144B of the Income Tax Act, 1961. The Assessing Officer (AO) made an addition of Rs. 3,10,25,062 under Section 40A(3) due to unverified substantial cash payments for agricultural produce. The CIT(A) confirmed this addition, noting the assessee's failure to respond to four notices. During the appeal hearing before the ITAT, the assessee's authorized representative sought time to file a paper book, admitting it would constitute additional evidence not presented to the CIT(A). The representative requested the matter be set aside to the CIT(A) for fresh consideration.

What were the issues?

1. Whether the addition of Rs. 3,10,25,062 made by the Assessing Officer under Section 40A(3) of the Income Tax Act, 1961, on account of unverified cash payments for agricultural produce, is justified? Assessee's contention: The assessee's authorized representative sought to file a paper book containing relevant details, admitting it would be additional evidence not previously submitted to the CIT(A). The assessee prayed for the matter to be set aside to the CIT(A) for fresh consideration, undertaking to file all relevant details which were previously unfiled for certain reasons. Revenue's contention: The judgment records no specific contention from the revenue regarding the issues raised by the assessee.

Which sections of the Income-tax Act were involved?

Section 40A(3),Section 250,Section 147,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: DR. BRR Kumar & Shri Tapas Ram Misra

For Appellant: Shri Tej Shah, A.R
For Respondent: Shri Kiran Unavekar, CIT-DR

THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before DR. BRR Kumar, Vice President And Shri Tapas Ram Misra, Judicial Member ITA No: 2967/Ahd/2026 Assessment Year: 2017-18

Paras Seeds Corporation ITO Ward - 1, Himatnagar Income Tax Office, At-Surpur Valsana Road, Vs Surpur, Himatnagar-383430, Sabarkantha Gujarat Himatnagar-395001, Gujarat PAN: AAJFP8210G (Appellant) (Respondent) Assessee by: Shri Tej Shah, A.R. Revenue by: Shri Kiran Unavekar, CIT-DR Date of hearing : 12-10-2026 Date of pronouncement : 13-10-2026 आदेश/ORDER PER TAPAS RAM MISRA, JUDICIAL MEMBER:

The present appeal has been filed by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to as “NFAC”), Delhi (hereinafter referred to as “CIT(A)”), dated 17.06.2026 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2017-18.

2.

The assessment in this case was made u/s. 147 r.w.s. 144B of the Income Tax Act. At the time of hearing, the A.O. had provided sufficient opportunities to the assessee and the assessee

I.T.A No. 2967/Ahd/2026 Paras Seeds Corporation vs. ITO

had responded on certain occasions, filing details as required by the A.O. The Assessing Officer made addition of Rs.3,10,25,062/- u/s 40A(3) of the Act on the ground that the substantial cash payments made by the assessee towards purchase of agricultural produce remained unverified.

3.

On appeal, the Ld. CIT(A) confirmed the addition on the ground that the assessee did not respond to the notices issued on four different occasions and therefore there was nothing on record to take a view different from what the A.O. had taken in the assessment order.

4.

In the hearing before us, the Ld. A.R. sought time to file a paper book in this case but admitted that such all the papers in the paper book would amount to additional evidence as the same were not filed before the CIT(A). The Ld. A.R. prayed that the matter be set-aside to the CIT(A) for fresh consideration and undertook to file all the relevant details which he stated that the assessee was unable to file earlier for certain reasons.

5.

In the interest of proper disposal of this appeal involving a very large addition, we feel it is necessary that all the relevant details be brought on record and examined. We therefore set- aside the order of the Ld. CIT(A) and restore it for fresh consideration after taking into account all the details that the assessee may file. The assessee is directed to forthwith file all the relevant details and documents without seeking any unnecessary adjournments or otherwise being non-compliant with the notices.

I.T.A No. 2967/Ahd/2026 Paras Seeds Corporation vs. ITO

6.

In the result, the appeal of the assessee is allowed for statistical purposes.

This Order is pronounced on 13/10/2026

Sd/- Sd/- (DR. BRR KUMAR) (TAPAS RAM MISRA) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad : True Copy Dated 13/10/2026 Rajesh आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद

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