NIMIT AGRAWAL, RAIPUR,RAIPUR vs. DCIT, CENTRAL CIRCLE-1, RAIPUR, RAIPUR

These matters had already been taken up for hearing earlier also and during that time, the Ld. Counsel for the assessee appeared. However, today when the matter was called for hearing none appeared and petition has been filed stating that the said Counsel is busy with complying statutory requirements for filing tax audit reports. However, in terms with the decision of the Hon’ble Supreme Court in the case of Ishwarlal Mali Rathod Vs. Gopal and Ors., passed in Special Leave Petition (Civil) Nos. 14117-14118 of 2021, order dated 20.09.2021, there is no case made out for granting any further adjournment in the case of the assessee. Materials/documents are carefully perused, submissions of the Ld. Sr. DR are recorded and the matter is heard on merits.

At the very outset, it is noted in the grounds of appeal that the Ld. CIT(Appeals) had overlooked the A.O had violated principles of natural

Similarly, I find that as per Ground of appeal No.3 in ITA No.622/RPR/2026, A.Y.2020-21, the assessee contends that the First Appellate Authority had overlooked violation of the principles of natural justice by the A.O and the said ground is extracted as follows: “3. That the Ld. CIT(Appeals) severely erred in law and on facts in upholding the impugned addition of Rs.1,00,000/- while completely ignoring the violation of principles of natural justice by the Ld. Assessing Officer, who repeatedly denied the Appellant the statutory right to cross-examine the party whose statement recorded u/s.131 of the Income Tax Act, 1961 was used as the sole foundation against the Appellant. Therefore, the assessment order of Ld. Assessing Officer and the appellate order of Ld. CIT(Appeals), both are void-ab-initio.”

Now before this Bench, it has been assailed that principles of natural justice has not been followed by the A.O and at the same time, I find that there is no adjudication regarding this ground that cross examination should have been provided by the A.O and that the said ground assailed before the First Appellate Authority has not been adjudicated at all in the entire order of the Ld. CIT(Appeals). Therefore, without going into the merits of the matter, on this very aspect that ground assailed by the assessee that opportunity of cross examination was not provided to the assessee by the A.O and the said ground was left un-adjudicated by the First Appellate Authority, hence, for both these years, the orders of the Ld. CIT(Appeals) are set aside and the matters are remanded back to his file for adjudication of the said ground assailed by the assessee regarding opportunity of cross examination. Since this ground goes to the root of the matter, it has to be decided by the First Appellate Authority, first. The Ld. CIT(Appeals) shall pass a speaking order

In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in open court on 21st day of October, 2026.