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Facts
The assessee, Nimblelogik Pvt. Ltd., filed a nil return, but the Assessing Officer made additions totaling Rs.1,50,50,674/- under Sections 68, 69, and adhoc disallowances. The Ld. CIT(A)/NFAC dismissed the assessee's appeal ex-parte for non-prosecution, as the assessee repeatedly sought adjournments but failed to furnish submissions or avail opportunities.
Held
The Income Tax Appellate Tribunal observed that the CIT(A) dismissed the appeal for want of prosecution without deciding on the merits, which is contrary to Section 250(6). The Tribunal deemed it proper to restore the matter to the CIT(A) to grant one final opportunity to the assessee to substantiate its case and decide the issue on merits by passing a speaking order.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte for non-prosecution without a decision on merits, and if the assessee should be granted a final opportunity to present its case.
Sections Cited
143(2), 142(1), 143(3), 68, 69, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & Ms. ASTHA CHANDRA
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER Assessment year : 2022-23 Nimblelogik Pvt. Ltd. ACIT, Circle – 2, Pune F No.A6/103, Meghapolis, Vs. Sunway PH-III, Hinjewadi, Pune – 411057 PAN: AAHCN2080P (Appellant) (Respondent) Assessee by : Shri Sachin P Kumar Department by : Shri Rajesh Gawali, Addl.CIT Date of hearing : 10-12-2025 Date of pronouncement : 12-12-2025 O R D E R PER R.K. PANDA, VP:
This appeal filed by the assessee is directed against the order dated 28.07.2025 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2022-23. 2. Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. CIT(A) / NFAC in confirming the addition of Rs.1,50,50,674/- made by the Assessing Officer.
Facts of the case, in brief, are that the assessee is a private limited company engaged in the business of transportation and logistics services under the name and style of “Nimblelogik Pvt. Ltd.” It filed its return of income on 05.11.2022 declaring Nil income. The case of the assessee was selected for scrutiny and 2 accordingly notice u/s 143(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) was issued. Subsequently the Assessing Officer issued notice u/s 142(1) of the Act along with a questionnaire. The assessee in response to the same filed the requisite details. The Assessing Officer completed the assessment u/s 143(3) of the Act on 15.03.2024 determining the total income of the assessee at Rs.1,50,50,674/- wherein he made the following additions: (i) Addition u/s 68 being share premium received on the ground that the assessee failed to prove genuineness of transaction and creditworthiness of shareholders along with necessary supporting evidences - Rs.1,00,01,600/- (ii) Addition on account of trade payable on the ground of non furnishing of documentary evidences - Rs.7,71,307/- (iii) Addition u/s 69 being loan / advance given during the year under consideration on the ground of non furnishing of documentary evidences - Rs.9,00,000/- (iv) Adhoc Disallowance of 20% of professional expense of Rs.15,70,785/-, travel expneses of Rs.10,25,537/- and salary expenses of Rs.1,42,92,514/- - Rs.33,77,767/- ------------------- Rs.1,50,50,674/- -------------------
Since the assessee was filing adjournment after adjournment and did not avail of the opportunities granted by the Ld. CIT(A) / NFAC, he dismissed the appeal filed by the assessee by observing as under:
3 5. Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal.
The Ld. Counsel for the assessee submitted that the assessee sought adjournment on 08.07.2025 based on which the Ld. CIT(A) / NFAC had granted adjournment to 16.07.2025. However, when the assessee filed an adjournment on 16.07.2025 stating that it is preparing detailed written submission, the Ld. CIT(A) / NFAC without giving any further opportunity, passed the order on 28.07.2025. He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing the requisite details. Further, the Ld. CIT(A) / NFAC has not decided the appeal on merit although some details were available before him as per statement of facts and grounds of appeal. However, he has 4 simply dismissed the appeal for want of prosecution which is not as per the provisions of section 250(6) of the Act.
The Ld. DR on the other hand heavily relied on the orders of the Assessing Officer and the Ld. CIT(A) / NFAC.
We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and the Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. We find the Assessing Officer in the instant case determined the total income of the assessee at Rs.1,50,50,674/- as against the nil return of income by making certain additions / disallowances. We find the Ld. CIT(A) / NFAC dismissed the appeal for want of prosecution, the reasons of which have already been reproduced in the preceding paragraphs. It is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details. It is also his submission that the Ld. CIT(A) / NFAC has not decided the issue on merit and dismissed the same for want of prosecution.
A perusal of the order of the Ld. CIT(A) / NFAC shows that the Ld. CIT(A)/ NFAC has not decided the appeal on merit but has simply dismissed the same for want of prosecution. We find the provisions of section 250(6) of the Act which read as under:
5 “250(1). … (6) The order of the [Joint Commissioner (Appeals) or the] Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision.”
Since it is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate its case by filing the requisite details, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(A) / NFAC with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law by passing a speaking order. The assessee is also hereby directed to submit the requisite details before the Ld. CIT(A) / NFAC on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(A) / NFAC is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.