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Facts
The assessee challenged an addition of Rs. 2.26 crore to its income for Assessment Year 2015-16, attributed to excess stock discovered during a survey under Section 133A. The Commissioner of Income Tax (Appeals) summarily dismissed the assessee's appeal without issuing a speaking order.
Held
The Income Tax Appellate Tribunal held that the CIT(A)'s order was non-speaking and therefore restored the issue on merits back to the ld. CIT(A) for fresh adjudication, with directions to pass a speaking order as contemplated under Section 250(6) of the Act after considering the assessee's submissions.
Key Issues
Whether the Commissioner of Income Tax (Appeals) erred in summarily dismissing the assessee's appeal without passing a speaking order, and consequently, the validity of the addition made for excess stock discovered during a survey.
Sections Cited
143(3), 250, 133A, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y.2015-16 is directed against the order dated 02.12.2024 passed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 arising out of Assessment order dated 23.12.2017 passed u/s.143(3) of the Act.
When the appeal was called for, none appeared on behalf of the assessee despite due service of notice of hearing. We however on perusal of the record with the assistance of ld. Departmental Representative observe that the impugned order of ld.CIT(A) is a non-speaking order as ld.CIT(A) has summarily dismissed the assessee’s appeal observing as follows :
“1. The grounds of appeal object to addition of Rs.22622630/- on account of excess stock with bank. In this case survey u/s133A of the IT Act was conducted on 13.02.2015. The survey action was conducted at business premises of M.s Solufeed Plant Products And Services Private Ltd. Dr.Sackar Accident Hospital, Lokmanya Nagar, Nagpur Road, Behind KTHM College Nashik-422002. During the survey a trial balance for a period from 01.04.2014 to 31.01.2015 was obtained from the assessee's books of account. As per this trial balance the closing stock was of Rs.3.38Cr. And as per the stock report submitted by the assessee to the TJSB Bank the closing stock was shown at Rs.5.63 Cr. This stock difference of Rs.2.26Cr. was accepted by the Director of the company as an additional income for the AY.2015-16. The only conclusion in this respect can be drawn is that the submission of the assessee dated 11.12.2017 on the basis of tutored facts is not tenable in the eyes of law and provisions of income Tax Act, 1961. Therefore, the addition of Rs.22622630/- is considered by the AO as his concealed income on account of excess stock found during the course of survey which was admitted by the director of the company. The addition of Rs.22622630/- being excess stock with bank is confirmed.
2. The appeal filed by the assessee is dismissed.”
We have heard the ld. Departmental Representative and perused the record placed before us. We notice that the said order cannot be categorised as a speaking order and therefore we in the larger interest of justice deem it proper to restore the issue on merits of the case to the file of ld.CIT(A) for afresh adjudication. Ld.CIT(A) after considering the submissions of the assessee shall pass a speaking order as contemplated u/s.250(6) of the Act. Assessee is directed to provide latest email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and the effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 27th day of May, 2025.