ZYKA MERCHANDISE PVT. LTD.,INDORE vs. ACIT CENTRAL-2, BHOPAL, BHOPAL

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ITA 46/IND/2025Status: DisposedITAT Indore12 September 2025AY 2017-184 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal has not yet provided a decision on the merits of the case. The provided text only outlines the procedural aspects of the appeals being filed and the parties involved.

What were the facts?

The assessee, Zyka Merchandise Pvt. Ltd., filed appeals against orders passed by the CIT(A) which arose from assessment orders passed by the DCIT under Section 147/144 of the Income-tax Act. The appeals pertain to Assessment Years 2017-18 and 2018-19.

What were the issues?

The core issue revolves around the validity and correctness of assessment orders passed under Section 147/144 of the Income-tax Act, which are being challenged by the assessee.

Which sections of the Income-tax Act were involved?

Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI

For Appellant: Shri Harsh Vijaywargiya, AR
For Respondent: Shri Raghunath, CIT-DR
Hearing: 02.09.2025Pronounced: 12.09.2025

Heard together (2 matters)

ITA No.46/Ind/2025
ITA No.92/Ind/2025

Read from the judgment's own cause title. This page is filed under one of them.

आदेश/ O R D E R

Per B.M. Biyani, AM:

1.

The captioned two (2) appeals have been filed by assessee challenging two (2) separate orders of first-appeal dated 25.10.2024 & 06.12.2024 passed by learned Commissioner of Income-Tax (Appeals)-3, Bhopal [“CIT(A)”], which in turn arise out of respective assessment-orders dated 26.03.2022 & 08.07.2021 passed by learned DCIT-Central Circle (2), Bhopal [“AO”] u/s 147/144 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2017-18 & 2018-19, on the grounds as mentioned in Appeal Memos (Form No. 36).

2.

Ld. AR for assessee at first carries us to the orders of lower-authorities and demonstrates that the AO as well as CIT(A) have passed the orders of assessment as well as orders of first-appeals ex-parte to assessee for non- representation. Thereafter, the Ld. AR carries us to Para 4 of assessment- orders to further demonstrate that the all notices were issued by AO during Covid-19 pandemic period; hence the assessee was unable to comply with those notices. Thereafter, Ld. AR carries us to the Form No. 35 filed by assessee to CIT(A) and submits that the email id: ziyampl@hotmail.com mentioned therein for sending communications to assessee was an email id which had been automatically taken by system while filing first-appeal.

However, the said e-mail id of ‘hotmail’ mailing service was very old and not in operation and the assessee could not receive notices of hearings fixed by Page 2 of 4 & 92/Ind/2025 - AY 2017-18 & 2018-19 CIT(A); hence the assessee was unable to participate in hearings of first- appeal. On merit of case, Ld. AR again carries us to assessment-order and submits that the AO has made hefty additions for lack of evidences and one amongst those additions is the addition on account of “Loans & Advances” given by assessee which were duly recorded in books of assessee and appearing in Balance-Sheet. According to Ld. AR, this addition on account of “Loans & Advances” is patently bad, illegal and could not have been made.

Ld. AR thus submits that considering the facts of assessee’s case, the present matters are fit for restoring back to the file of AO for proper adjudication afresh. Ld. AR acknowledges that the assessee is ready and willing to make a proper representation before AO if an opportunity is given.

3.

Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent its case before AO and do not seek unnecessary adjournments.

4.

Considering above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matters are restored at the level of AO, we remand these matters back to the file of AO for adjudication afresh, at the risk and responsibility of assessee. The AO shall give necessary opportunity of hearing to assessee and pass appropriate orders uninfluenced by his earlier orders. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by AO and do not seek unnecessary adjournments failing which the AO shall be at Page 3 of 4 & 92/Ind/2025 - AY 2017-18 & 2018-19 liberty to pass appropriate orders in accordance with law. Ordered accordingly.

5.

Resultantly, these appeals are allowed for statistical purpose.

Order pronounced in open court on 12/09/2025

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