BISHNOI BROTHERS HOTELS AND RESORTS PRIVATE LIMITED,SAWAI MADHOPUR vs. INCOME TAX OFFICER WARD -1, SAWAI MADHOPUR, SAWAI MADHOPUR

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ITA 591/JPR/2025Status: DisposedITAT Jaipur28 October 2026AY 2011-20129 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the appellate orders passed by the CIT(A) were cryptic, lacking reference to the facts of the case, grounds of appeal, and the opportunities of hearing provided. The CIT(A) had not considered the written submissions and paper books filed by the assessee, thereby violating the principles of natural justice. Consequently, the Tribunal set aside all four appellate orders and remanded them to the file of the CIT(A). The CIT(A) was directed to provide adequate opportunities of hearing to the assessee, consider the written submissions, and pass a speaking order addressing both the grounds of appeal and the merits of the case, including jurisdictional issues. The Tribunal explicitly stated that it was not going into the merits of the case at that juncture. A copy of the order was marked to the Chairman, CBDT, for appropriate instructions to Faceless Appellate Commissioners to pass speaking orders.

What were the facts?

The assessee, Bishnoi Brothers Hotels And Resorts Private Limited, filed four appeals before the Income Tax Appellate Tribunal (ITAT), Jaipur Bench, against the appellate orders dated 03.03.2025 passed by the Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi. These appeals pertained to assessment years 2011-12 to 2014-15 and arose from reassessment orders passed under Section 143(3) read with Section 147 of the Income Tax Act, 1961. The assessee contended that the CIT(A) passed cryptic orders without considering their detailed written submissions and without providing adequate opportunity of hearing, leading to a non-application of mind and mechanical upholding of the assessment orders. The revenue, represented by the JCIT, supported the orders passed by the lower authorities.

What were the issues?

1. Whether, in law and on facts, the CIT(A) grossly erred in passing cryptic orders without considering the assessee's detailed written submissions and without providing an opportunity of hearing, thus reflecting a complete non-application of mind? 2. Whether, in law and on facts, the reassessment notice issued under Section 148 of the Act is bad in law, illegal, barred by limitation, and consequently, the related proceedings are void-ab-initio? 3. Whether, in law and on facts, the lower authorities grossly erred in rejecting the assessee's books of accounts relating to building construction by relying on a Departmental Valuation Report and making additions as unexplained investment? 4. Whether, in law and on facts, the lower authorities grossly erred in disallowing the claim under Section 35AD and in not allowing the alternate claim of depreciation? Assessee's Contentions: - The CIT(A) passed cryptic orders without considering written submissions and paper books, and without providing proper hearing, violating principles of natural justice. - The reassessment notice under Section 148 is bad in law, illegal, and barred by limitation. - The rejection of books of accounts for building construction and the subsequent additions were illegal and based on blind reliance on the Departmental Valuation Report. - The disallowance of the Section 35AD claim and the denial of alternate depreciation claim were illegal. Revenue's Contentions: The Revenue supported the orders passed by the lower authorities and requested confirmation of the additions.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 35AD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, JAIPUR

Before: Shri T. R. Senthil Kumar & Shri Prakash

For Appellant: Shri Siddharth Ranka, Adv, Ms. Satwika Jha, Adv

आदेश/ORDER

PER : T. R. SENTHIL KUMAR, JUDICIAL MEMBER:- These four appeals are filed by the assessee as against separate appellate orders all dated 03.03.2025 passed by Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi, arising out of reassessment order passed u/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to Asst. Years 2011-12 to 2014-15.

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2.

The Grounds of Appeal raised by the assessee in four appeals are as follows:- ITA No. 591/JPR/2025 (AY:2011-12) 1) 1. That in law and in the facts and in circumstances of the case, the ld.CIT (Appeals) grossly erred in passing cryptic order without considering the detailed written submissions filed by the assessee appellant which reflects complete non-application of mind whatsoever. 2) 1.1 That in law and in the facts and in circumstances of the case, the ld. CIT (Appeals) grossly erred in not deciding the grounds of appeal raised by the assessee appellant on merits and in mechanically upholding the assessment order. 3) 1.2 That it is a fit case wherein cost incurred by the assessee towards filing of the instant appeal before the Hon’ble Tribunal be levied upon the Respondent. 4) 2. That in law & in the facts and in circumstances of the case the impugned reassessment notice issued under section 148 of the Act is bad in law, is illegal, is barred by limitation & consequential proceedings passed in reference thereto are void-ab- initio. 5) 3. That on the law and in the facts and in the circumstances of the casethe learned lower authorities grossly erred in rejecting the books of accounts relating to building construction by placing blind reliance upon Departmental Valuation Report dated 26.05.2015 and in turn making an addition of Rs. 1,69,82,440/- as unexplained investment which is illegal and bad in law. 6) 4. The appellant craves leave to add, alter, modify or amend any ground on or before the date of hearing.

ITA No. 592/JPR/2025 (AY:2012-13) 1) 1. That in law and in the facts and in circumstances of the case, the ld. CIT (Appeals) grossly erred in passing cryptic order without considering the detailed written submissions filed by the assessee appellant which reflects complete non-application of mind whatsoever. 2) 1.1 That in law and in the facts and in circumstances of the case, the ld. CIT (Appeals) grossly erred in not deciding the grounds of appeal raised by the assessee appellant on merits and in mechanically upholding the assessment order.

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3) 1.2 That it is a fit case wherein cost incurred by the assessee towards filing of the instant appeal before the Hon’ble Tribunal be levied upon the Respondent. 4) 2. That in law & in the facts and in circumstances of the case the impugned reassessment notice issued under section 148 of the Act is bad in law, is illegal, is barred by limitation & consequential proceedings passed in reference thereto are void-ab- initio. 5) 3. That on the law and in the facts and in the circumstances of the case the learned lower authorities grossly erred in rejecting the books of accounts relating to building construction by placing blind reliance upon Departmental Valuation Report dated 26.05.2015 and in turn making an addition of Rs. 1,96,01,240/- as unexplained investment which is illegal and bad in law. 6) 4. The appellant craves leave to add, alter, modify or amend any ground on or before the date of hearing.

ITA No. 593/JPR/2025 (AY:2013-14) 1) 1. That in law and in the facts and in circumstances of the case, the ld. CIT (Appeals) grossly erred in passing cryptic order without considering the detailed written submissions filed by the assessee appellant which reflects complete non-application of mind whatsoever. 2) 1.1 That in law and in the facts and in circumstances of the case, the ld. CIT (Appeals) grossly erred in not deciding the grounds of appeal raised by the assessee appellant on merits and in mechanically upholding the assessment order. 3) 1.2 That it is a fit case wherein cost incurred by the assessee towards filing of the instant appeal before the Hon’ble Tribunal be levied upon the Respondent. 4) 2. That in law & in the facts and in circumstances of the case the impugned reassessment notice issued under section 148 of the Act is bad in law, is illegal, is barred by limitation & consequential proceedings passed in reference thereto are void-ab- initio. 5) 3. That on the law and in the facts and in the circumstances of the case the learned lower authorities grossly erred in rejecting the books of accounts relating to building construction by placing blind reliance upon Departmental Valuation Report dated 26.05.2015 and in turn making an addition of Rs. 1,36,16,187/- as unexplained investment which is

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illegal and bad in law.

6) 4. The appellant craves leave to add, alter, modify or amend any ground on or before the date of hearing.

ITA No. 591/JPR/2025 (AY:2014-15) 1) 1.0 That in law and in the facts and in circumstances of the case, the ld. CIT (Appeals) grossly erred in passing cryptic order without considering the detailed written submissions filed by the assessee appellant which reflects complete non-application of mind whatsoever. 2) 1.1. That in law and in the facts and in circumstances of the case, the ld. CIT (Appeals) grossly erred in not deciding the grounds of appeal raised by the assessee appellant on merits and in mechanically upholding the assessment order. 3) 1.2. That it is a fit case wherein cost incurred by the assessee towards filing of the instant appeal before the Hon’ble Tribunal be levied upon the Respondent. 4) 2. That in law & in the facts and in circumstances of the case the impugned reassessment notice issued under section 148 of the Act is bad in law, is illegal, is barred by limitation & consequential proceedings passed in reference thereto are void-ab- initio. 5) 3. That on the law and in the facts and in the circumstances of the case the learned lower authorities grossly erred in disallowing claim u/s. 35AD of Rs. 10,80,46,997/- which is illegal and bad in law. 6) 3.1. That on the law and in the facts and in the circumstances of the case the learned lower authorities grossly erred in not allowing alternate claim of grant of depreciation which is illegal and bad in law. 7) 4. The appellant craves leave to add, alter, modify or amend any ground on or before the date of hearing.

3.

At the outset, Ld. Counsel appearing for the assessee brought to our attention to the cryptic order passed by Ld. CIT(A) in all the four assessment years. For ready reference, the appellate order passed for the Asst. Year 2011-12 is reproduced below:-

I.T.A No. 591 to 594/JPR/2025 Page No 5 Bishnoi Brothers Hotels And Resorts Private Limited

I.T.A No. 591 to 594/JPR/2025 Page No 6 Bishnoi Brothers Hotels And Resorts Private Limited

I.T.A No. 591 to 594/JPR/2025 Page No 7 Bishnoi Brothers Hotels And Resorts Private Limited

4.

Ld. Counsel further submitted that on perusal of the above appellate order makes it clear that no discussion to the facts of the case, grounds of appeal raised by the assessee and no details of opportunity of hearing(s) given to the assessee before disposal of the appeal. Further Ld. Counsel brought to our notice to the written submission, Paper Book Part-1 and Part-2 filed before Ld. CIT(A) with e-acknowledgement and also hard copy of the above documents. Thus, Ld. Counsel pleaded that neither opportunity of hearing was given to the assessee nor taken reference to the written submission and paper books filed by the assessee. In the above circumstances, Ld. Counsel requested to set aside the cryptic appellate order passed by Ld. CIT(A).

5.

Per contra, Ld. DR appearing for the Revenue supported the order passed by the Lower Authorities and requested to confirm the addition.

6.

We have given our thoughtful consideration and perused the materials available on record including paper books filed by the assessee. The above appellate orders passed by Ld. CIT(A) are without reference to the facts of the case, grounds of appeal raised by the assessee and how many opportunities of hearing given to the assessee. Further, the Ld. CIT(A) has not considered the Written Submission and Paper Books filed by the assessee on 12.02.2025 with e-filing acknowledgement. Thus, the appellate orders passed by Ld. CIT(A) are gross negligence of Principal of Natural Justice and without even reproducing the Grounds of Appeal and the contention of the assessee from the Statement of Facts filed in Form No. 35. Further, the orders of

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Ld. CIT(A) are found to be very cryptic and not well within the provision of law.

6.1. Thus, this is a fit case to impose cost on the Appellate Authority, since the assessee was compelled to file second appeal against the above orders. However without giving opportunity of hearing to the Ld. CIT(A) imposing cost on him, is against the Principle of Natural Justice. Therefore, we mark a copy of this order to the Chairman, Central Board of Direct Taxes, New Delhi for appropriate instructions to the Faceless Appellate Commissioners to pass speaking order.

7.

In the above circumstances of the case and in the interest of principle of natural justice, we deem it fit to set aside all the four appellate orders to the file of Ld. CIT(A) with a direction to give adequate opportunity of hearings to the assessee to explain the written submissions filed by the assessee and also pass a speaking order considering the grounds of appeal raised by the assessee.

8.

Though the assessee filed detailed submissions on merits of the case, we are not going into the same at this juncture and left it open to the Appellate Authority to decide both the jurisdiction and merits of the case.

9.

In the result, the appeal filed by the assessee is hereby allowed for statistical purposes. Order pronounced in the open court on 28-10-2026

Sd/- Sd/- (PRAKASH) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 28/10/2026 Dhananjay K., Sr. PS

I.T.A No. 591 to 594/JPR/2025 Page No 9 Bishnoi Brothers Hotels And Resorts Private Limited

आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. The Chairman, CBDT, New Delhi (for appropriate instructions to CIT(A)’s to pass speaking orders). 2. Assessee 3. Revenue 4. Concerned CIT 5. CIT (A) Digitally signed by Dhananjay Kumar 6. DR, ITAT Date: 2026.11.03 7. Guard file. '11:48:07 +05'30 By order/आदेश से, सहायक पंजीकार आयकर अपील�य अ�धकरण, जयपुर

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