NORTH EAST NE BITUMEN,GUWAHATI vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 1, GUWAHATI, GUWAHATI

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ITA 257/GTY/2025Status: DisposedITAT Guwahati13 March 2026AY 2021-223 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the books of accounts and documents were seized by the service tax authorities, preventing their production before the AO and CIT(A). Consequently, the orders were passed without considering these crucial records. In the interest of justice and fair play, the Tribunal decided to restore the cases to the file of the AO. This restoration is to allow the AO to examine the books of accounts and documents after they are presented by the assessee. The AO is directed to decide the case denovo after affording the assessee a reasonable opportunity of being heard. The principle is that where crucial evidence was unavailable due to external seizure and could not be presented to the lower authorities, the matter should be remanded for a fresh consideration upon production of such evidence.

What were the facts?

The assessee, North East NE Bitumen, is appealing against an order of the National Faceless Appeal Centre, Delhi, dated 17.02.2025, for Assessment Year 2021-22. Penalties were levied under Section 271AAD and Section 270A of the Income Tax Act, 1961, by orders dated 23.06.2023 and 27.06.2023. The assessee's counsel stated that the books of accounts and documents were seized by the DGGI, Shillong Regional Unit, and thus could not be produced before the Assessing Officer (AO) or the Commissioner of Income Tax (Appeals) [CIT(A)]. The assessee requested an opportunity to present these documents after their release by the DGGI. The Departmental Representative (DR) conceded that the documents were not produced due to seizure by service tax authorities.

What were the issues?

1. Whether the Tribunal should grant the assessee an opportunity to produce books of accounts and documents seized by the DGGI before the authorities below, considering they were unavailable during the original assessment and appeal proceedings. Assessee's Contention: The assessee argued that due to the seizure of its books of accounts and documents by the DGGI, it was unable to furnish them before the AO and CIT(A). Upon the release of these records, the assessee prayed for one opportunity to present them to the authorities. Revenue's Contention: The DR fairly conceded that the assessee had not produced the documents/books of account before the authorities below because they were seized by the service tax authorities.

Which sections of the Income-tax Act were involved?

Section 271AAD,Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘GAUHATI BENCH’, GUWAHATI

Before: SHRI DUVVURU RL REDDY, VP & SHRI RAJESH KUMAR, AM

For Appellant: Shri Ramesh Goenka, AR
For Respondent: Shri Santosh Kumar karnani, DR
Hearing: 09.03.2026Pronounced: 13.03.2026

These are appeals preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT (A)”] dated 17.02.2025 for the AY 2021-22. The penalties were levied u/s 271AAD & 270A of the Income Tax Act, 1962 (hereinafter referred as „the Act‟) vide order dated 23.06.2023 & 27.06.2023.

2.

The ld. Counsel for the assessee at the outset stated that the documents / books of accounts of the assessee were seized by DGGI, Shillong Regional Unit, Meghalaya and therefore the same could not be furnished by the assessee before the ld. AO as well as before the ld. CIT (A). The ld. Counsel for the assessee prayed before the bench that since the books of accounts/records were released by the DGGI

3.

The ld. DR on the other hand, fairly considered that the assessee had not produced the documents/ books of account before the authorities below as these were seized by the service tax authorities.

4.

After hearing the rival contentions and perusing the materials available on record, we find that the books of accounts/ documents were seized by the service tax authorities and consequently could not be produced before the ld. AO as well as before the ld. CIT (A) and the orders were passed without taking into account the records/books of accounts. Therefore, in the interest of justice and fair play, we are inclined to restore these cases to the file of the ld. AO so that these books of accounts along with documents could be examined by the authorities and case can be decided denovo after affording reasonable opportunity of being heard to the assessee. Therefore, we restore the appeal to the file of AO with the above directions.

5.

In the result, the appeals of the assessee are allowed for statistical purposes.

Order pronounced on 13.03.2026.

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