ASHISH AGARWAL,BHOPAL vs. DCIT/ACIT-1(1), BHOPAL, BHOPAL

Per Paresh M. Joshi, JM:

This is an Appeal filed by the Assessee under section 253 of

the Income Tax Act 1961, [ herein after referred to as the Act

for the sake of brevity] before this tribunal as & by way of a

second Appeal. The Assessee is aggrieved by the order

bearing Number:- ITBA / NFAC / S / 250 / 2025-26 /

1087824011(1) dated 24.03.2026 passed by the Ld. CIT(A)

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U/S 250 of the Act, which is herein after referred to as the

“Impugned Order”. The Relevant Assessment Year is 2022-

23 and the corresponding previous year period is from

01.04.2021 to 31.03.2022.

2.1 That as and by way of an Assessment Order made u/s

143(3) RWS 144B of the Act, the total Income of the Assessee

was computed and Assessed at Rs 26,32,40,380/-. The Return

of Income was at Rs. 1,13,06,680/-. An addition of Rs.

12,01,25,964/- was made as & by way of an unexplained

expenditure u/s 69C of the Act, yet another addition was made

as & by way of an unexplained credit u/s 68 of Rs. 37,19,476/-.

The variation/additions of Rs. 3,22,08,472/- as unexplained

credit u/s 68 & Rs. 9,58,79,792/- as unexplained expenditure

u/s 69C were too made. That the aforesaid Assessment Order

bears No:- ITBA/AST/S/143(3)/2023-24/1063006889(1) and

that the same is dated 20.03.2024 which is hereinafter referred

to as the “Impugned Assessment Order” for the sake of brevity.

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2.2 In para 2 of the “Impugned Assessment Order” the ld

Assessing Officer has recorded as follows:-

2.3 That the Assessee being Aggrieved by the aforesaid

“Impugned Assessment Order” prefers the first appeal u/s

246A of the Act before the Ld CIT(A) who by the “Impugned

Order” has dismissed the 1st appeal of the Assessee on the

grounds & the reasons stated therein. The core grounds & the

reasons for the dismissal of the 1st appeal was as under: - 2.4 That the Assessee being aggrieved by the “Impugned Order”

has preferred the Instant Appeal before this Tribunal & has

raised the following grounds of Appeal in the Form No: -36

against the “Impugned Order” which are as under: -

“1. The ld CIT(A) was not justified in ex-parte

dismissing the appeal of the appellant, without

deciding the appeal on merits, and that a fair and

meaningful opportunity was not available to the

appellant to present his case.

the delay without considering the facts and

circumstances of the case.

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3. The ld CIT(A) was not justified in confirming the

addition of Rs. 12,01,25,964/- on account of

unexplained expenditure u/s 69C without

considering the facts and circumstances of the

case.

addition of Rs. 37,19,476/- on account of

unexplained credits u/s 68 without considering

the facts and circumstances of the case.

addition of Rs. 3,22,08,472/- on account of

unexplained credits u/s 68 without considering

the facts and circumstances of the case.

addition of Rs. 9,58,79,792/- on account of

unexplained expenditure u/s 69C without

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considering the facts and circumstances of the

case.

modify any of the grounds of appeal.”

3 Record of Hearing

3.1 The hearing in the matter took place before this Tribunal on

26.10.2026 when the Ld AR for & on behalf of the Assessee

appeared before us & interalia contended that the “Impugned

Order” is bad in law, illegal & not proper. It is in violation of the

principles of Natural Justice. It therefore deserves to be set aside.

3.2 The Ld AR has placed on the record of this tribunal a brief

synopsis containing 8 pages. A paperbook containing Pages 1 to

124 to 305 in support.

3.3 The Ld AR then invited our attention to Internal Page 2, 3, 4,

& 5 of the “Impugned Assessment Order” & stated that total

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addition is about 26Cr odd amounts. The Assesseee is an

exporter of the Bananas to the Arab countries. On 28.10.2022

the Assesssee had filed ROI at Rs. 1,13,06,680/- for the

Assessment Year 2022-23. Our attention was invited to Internal

Page 2 of the “Impugned Assessment Order” to caption “Details

of opportunities given” & same was read out. Our attention was

invited to PAPER BOOK Page 43 to 46 which was a copy of

Notice dt 06.12.2023 u/s 142(1) of the Act to the Assessee. It

was submitted that the Questionnaire was very exhaustive &

many details were sought for. Next our attention was invited to

PAPER BOOK page 47 which was e Ack dt 30.12.2023 where in

the remarks column following was stated:-

“Respected Sir Maam Kindly find the attached

reply in the aforesaid proceedings. The annexures

are point wise mailed on

BHOPAL.ITO2.1INCOMETAX.GOV.IN due to the fact

that IT functionality allows only limited MB of

files to be uploaded & also there is restriction

with respect to no. of attachments. Please take the

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same on your record. Please find the copy of reply

to the notice & Screenshot of the mail of below.

Thereafter our attention was invited to PAPER BOOK Page 49

which was a letter dt 30.12.2023 to the Assessment Unit NFAC,

Income Tax Dept which in all had 10Annexures

correspondingly our attention was invited to “synopsis” Page

4 showing 10 Annexures under different heads. It was then

submitted that “Impugned Assessment Order” is dt 20.03.2024

whereas the first Appeal was filed on 21.06.2024 with delay. The

explanation for delay was given before Ld CIT(A) by an Affidavit &

despite giving Plausible explanation the first appeal was

dismissed & was not admitted without any discussion on the

merits. The Ld AR submitted that by & large “Impugned

Assessment Order” is not on merits and “Impugned Order” is

not on merits as Per 250(6) of the Act. The Ld AR prayed for

additional evidence application filed on 18.10.2026 under rule

29 be accepted & admitted. The Ld AR submitted that both the

orders of the lower authorities are not on merits. Per contra

the Ld SDR has relied upon the orders of the lower authorities.

Hearing was over & closed.

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4 Observations, Finding and Conclusions

4.1 We how have to decide the legality, validity and proprietary of

the “Impugned Order” basis records of the case & the rival

submission canvassed before us.

4.2 We have carefully perused the records of the case and have

heard the submissions.

4.3 We basis records of the case & after hearing & upon

examining the rival contentions of the Ld. AR & the Ld. DR

canvassed before us, are of the considered opinion that

though the “Impugned Assessment Order” is under section

143(3)/144B of the Act but the matter has not been

adjudicated & adjudged basis merits. Even the “Impugned

Order” is not on Merits. This Tribunal desires that the total

income of the assessee should be computed & assessed on

the real time basis exigible to tax in accordance with law by

following due process of law under the Act. This Tribunal

also expects the assessee to be complaint & should

cooperate with the Department as & when notices, etc.

are issued. In brief this tribunal desires the meritorious

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disposal of both the “Impugned Assessment Order” as

well as the “Impugned Order”. The Assessee cooperation in

this regard assumes importance. The Assessee cannot go in

slumber mode. In the result we are of the considered

opinion that the “Impugned Order” should be set aside &

the matter should be remanded back to the file of the Ld. AO

for passing a fresh order on merits of the case. It is the

expectation of this Tribunal that the Assessee would give his

full & complete details including latest e-mails of his &

and his counsel where the notices could be served effectively

by the Department. The Assessee to attend hearings as &

when fixed & file reply & details as sought by the Ld. AO.

The assessee is directed not to seek any adjournment on

any flimsy grounds.

4.4 In view of the above, we set aside the “Impugned Order” &

remand the case back to file of the Ld AO on denovo basis, who

shall now pass a speaking & well-reasoned order.

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4.5 In so far as order of Ld CIT(A) is concerned we hold that the

Assessee had shown reasonable cause & delay was not all

abnormal warranting dismissal on issue of Time Barred. The

Ld CIT(A) ought not to have dismissed the appeal in liminie. The

appeal ought to have been admitted & Ld CIT(A) ought to have

considered over all facts & circumstance of the case as he is

mandated to pass order on merits.

5 Order

5.1 In result the Impugned Order is set aside as and by way

of remand back to the file of the Ld Assessing Officer.

However for failure to provide a plausible reason for Non

Compliances before the lower authorities we impose a cost of Rs.

10,000/- on the Assesseee to be paid to “PM Relief Fund” & show

necessary proof in support thereof to Ld Assessing Officer before

he takes up the case for Denovo Adjudication afresh.

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5.2 In result, appeal is allowed for statistical purpose.

Pronounced in open court on 30.10.2026.

Sd/- Sd/- (ARVIND SONI) (PARESH M. JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER

Indore िदनांक/Dated : 30.10.2026

Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) Departmental Representative (5) (6) Guard File

Akhilesh Kumar Digitally signed by Akhilesh Kumar Date: 2026.11.02 17:36:54 +05'30' By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore

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