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Facts
The assessee, a firm, filed its return declaring nil income and a business loss. The case was selected for scrutiny, and the Assessing Officer made additions under Section 56(2)(x) and Section 69 of the Act due to the assessee not responding with details. The CIT(A) dismissed the assessee's appeal.
Held
The Tribunal condoned the delay in filing the appeal before the CIT(A). However, due to the assessee's failure to provide details to the lower authorities, the matter was remanded back to the Assessing Officer for proper verification and adjudication on merits, with an opportunity for the assessee to be heard.
Key Issues
Whether the delay in filing appeal before CIT(A) should be condoned, and whether additions made by AO under Section 56(2)(x) and Section 69 were justified without proper verification and opportunity to the assessee.
Sections Cited
56(2)(x), 69, 143(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: Dr. BRR Kumar & Ms. Suchitra Kamble
आदेश/ORDER Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 16-07- 2025 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2020-21.
The grounds of appeal
are as under:- Sl. No. Grounds of appeal Tax effect relating to each Ground of appeal
1. The ld. CIT(Appeals) has erred in law Rs. 1,23,78,040/- and on facts of the case, in not condoning the delay in filing appeal.
2. The ld. AO has erred in law and on Rs.34,18,907/- facts of the case in making addition of Rs. 98,02,874/-u/s.56(2)(x) of the Act.
3 The ld. AO has erred in law and on Rs.89,59,133/- facts of the case in making addition of Rs.1,14,86,068/-u/s.69 of the Act. 4 The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing, if need arise. Total tax effect Rs. 1,23,78,040/-
3. The assessee is a firm and filed its return of income for assessment year 2020-21 on 10-01-2021 declaring total income at Rs. nil and claimed current year business loss at Rs. 18,915/- . The case of the assessee was selected for scrutiny and notice u/s. 143(2) of the Act was issued on 29-06-2021. The assessee was given several opportunities but assessee has not responded the same, therefore the Assessing Officer made addition of Rs. 98,02,874/- as per provisos of section 56(2)(x) of the Act.
Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.
The A.R. submitted that the CIT(A) was not right in not condoning the delay in filing the appeal before the CIT(A). On merit, the ld. A.R. submitted that the addition of Rs. 98,02,874/- u/s. 56(2)(x) of the Act was not justified. The addition of Rs. 1,14,86,068/- u/s. 69 of the Act was not justified as assessment order as well as CIT(A) has not given proper opportunities to file the details before both the authorities.
The ld. D.R. relied upon the assessment order and the order of the CIT(A).
We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that 2 Solace Inn, A.Y. 2020-21 that the assessee has not filed details before the Assessing Officer as well as the CIT(A) and the CIT(A) has only mentioned the notice issued to the assessee but has not mentioned whether the notices were served to the assessee or not. The delay in filing the appeal before the CIT(A) needs to be condoned and hence the same is condoned. Since the assessee has not filed details, it will be appropriate to remand back this matter to the file of the Assessing Officer for proper verification of the details and adjudication of the issues on merit. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice.
In the result, the appeal of the assessee is partly allowed for statistical purpose.
Order pronounced in the open court on 17-11-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 17/11/2025 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद