SURESH KUMAR AGARWALA,NAGAON vs. THE INCOME TAX OFFICER, WARD - NAGAON, NAGAON

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ITA 287/GTY/2025Status: DisposedITAT Guwahati13 March 2026AY 2017-183 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee could not reply to the show cause notice during assessment proceedings and consequently could not furnish documents. Furthermore, the CIT(A) noted in its order that the assessee did not provide the cash book, day-wise cash register, or necessary evidence of cash flow, sales, or expenses, making it impossible to ascertain the sources of cash. Under these circumstances, the Tribunal found that restoring the issue to the file of the AO with a direction to re-adjudicate after affording a reasonable opportunity of hearing to the assessee would serve the ends of justice. The appeal was accordingly restored to the file of the AO for statistical purposes.

What were the facts?

The assessee, Suresh Kumar Agarwala, filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order of the Commissioner of Income-tax (Appeals) dated 25.07.2025 for Assessment Year 2017-18. The assessee's counsel submitted that a show cause notice issued by the Assessing Officer (AO) during assessment proceedings could not be replied to due to a family emergency. Similarly, before the CIT(A), all facts could not be presented. The assessee requested the appeal be restored to the AO for re-adjudication with a reasonable opportunity of hearing. The Revenue's counsel argued that the assessee was uncooperative despite repeated opportunities from both the AO and CIT(A), and relied on the lower authorities' orders.

What were the issues?

1. Whether the ITAT should restore the appeal to the Assessing Officer for re-adjudication, considering the assessee's inability to provide replies to show cause notices and furnish necessary documents due to personal exigencies, thereby denying a reasonable opportunity of hearing. (Mixed question of law and fact). The assessee contended that due to a family emergency, replies to the AO's show cause notice and necessary documentation before the CIT(A) could not be furnished, necessitating a remand for a fair hearing. The Revenue contended that the assessee was not cooperative despite repeated opportunities and relied on the orders of the lower authorities.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, GAUHATI BENCH, GUWAHATI

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

For Appellant: Shri Ramesh Goenka, AR
For Respondent: Shri Santosh Kumar Karnani, DR
Pronounced: 12.03.2026

This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals), ADDL/JCIT (hereinafter referred to as the “Ld. CIT(A)”] dated 25.07.2025 for the AY 2017-18.

2.

At the outset, the ld. Counsel for the assessee submitted that the show cause notice issued by the ld. AO during the assessment proceedings could not be replied due to some urgency in the family of the assessee. The ld. AR prayed that similarly before the ld. CIT (A) all the facts could not be brought on record. The ld. AR therefore prayed that the appeal may be restored to the file of the ld. AO with a direction to re-adjudicate the same after a reasonable opportunity of hearing to the assessee.

4.

After hearing the rival contentions and perusing the materials available on record, we find that the assessee could not reply to the show cause notice in the assessment proceedings and thus the documents could not be furnished. Similarly, before the ld. CIT (A), the ld. CIT (A) recorded a finding in Para no.6.1 that no cash book or day wise cash register was furnished by the assessee and similarly in Para no.6.2, the ld. CIT (A) noted that the assessee has not provided the necessary evidences of cash flow/ sale / expenses and therefore, sources of cash could not be ascertained. Under these circumstances, in our opinion the ends of justice will be well served if the issue is restored to the file of the ld. AO with a direction to re-adjudicate the same after affording a reasonable opportunity of hearing to the assessee. Therefore, we restore this appeal to the file of the ld. JAO with above direction. The appeal of the assessee is allowed for statistical purposes.

5.

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

Order pronounced on 13.03.2026.

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