SURENDRA SINGH,LUCKNOW vs. DCIT / ACIT-1, LUCKNOW
Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW
Before: SHRI ANADEE NATH MISSHRA & SHRI SUBHASH MALGURIA
PER ANADEE NATH MISSHRA, A.M.
(A)
This appeal vide I.T.A. No.416/Lkw/2025 has been filed by the assessee for assessment year 2017-18 against impugned appellate order dated
05/12/2023
(DIN
&
Order
No.
ITBA/NFAC/S/250/2023-
24/1058474155(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. Grounds of appeal are as under:
“1. That since entire investment in assets and liabilities, as shown in opening capital amounting to Rs.2,99,44,275/- was made OR incurred in the year prior to a.y.2017-18, hence no addition under section 69 of the Act is permissible in a.y. 2017-18, accordingly, addition made by Learned. AO as unexplained investment under section 69 of the Act is illegal, against the provisions of the Act and without juri iction.
Appellant by None
Respondent by Shri R.R.N. Shukla, Addl. CIT (D.R.)
I.T.A. No.416/Lkw/2025
Assessment Year:2017-18
2
That Ld. AO arbitrarily accepted opening capital to the extent of Rs.50 lacs out of total opening capital of Rs.2,99,44,275/-. He failed to come out the reason and basis of assuming the opening capital amounting to Rs.2,49,44,275/- invested in the year under appeal, accordingly, addition made by Ld. AO as unexplained investment under section 69 of the Act is against the law of natural justice, illegal and without juri iction.”
(C)
The facts of the case, in brief, are that the assessee is an individual and filed his return of income for the year under consideration on 28/03/2018 declaring total income of Rs.28,58,280/-. Assessment order dated 22/12/2019 was passed by the Assessing Officer u/s 143(3) of the I.T. Act whereby the assessee’s total income was assessed at Rs.2,78,02,555/- (rounded off to Rs.2,78,02,550/-). In the aforesaid assessment order, addition of Rs.2,49,44,275/- was made under section 69
of the I.T. Act. Aggrieved, the assessee carried the matter in appeal before the learned CIT(A). Vide impugned appellate order dated 05/12/2023, the assessee’s appeal was dismissed by the learned CIT(A) for non prosecution.
Aggrieved further, the assessee is in appeal before the Income Tax
Appellate Tribunal.
(C)
At the time of hearing before the Tribunal, none was present on behalf of the assessee. In absence any representation from assessee’s side, learned Departmental Representative was heard and materials available on record were perused. On perusal of records, it is seen that the assessment order was passed ex-parte qua the appellant assessee and the order passed by learned CIT(A) is non speaking order. In response to a query from Bench, the learned Departmental Representative for Revenue submitted that the issue in dispute may be restored back to the file of the learned CIT(A) with the direction to pass de novo order in accordance with law after
I.T.A. No.416/Lkw/2025
Assessment Year:2017-18
3
providing reasonable opportunity of being heard to the assessee. In view of the foregoing, the order of learned CIT(A) is set aside and issues in dispute are restored back to the file of learned CIT(A) with the direction to pass de novo speaking order on merits of the case in accordance with law after providing reasonable opportunity of being heard to the assessee.
(D)
In the result, the appeal is allowed for statistical purposes.
(Order pronounced in the open court on 15/10/2025) . .
(SUBHASH MALGURIA) (ANADEE NATH MISSHRA)
Judicial Member Accountant Member
Dated:15/10/2025
*Singh
Copy of the order forwarded to :
1. The Appellant
2. The Respondent.
3. Concerned CIT
4. D.R., I.T.A.T., Lucknow