BHAGWAN PRASADSINGHANIA HUF,NEEMUCH vs. AO NFAC, DELHI

Per Paresh M Joshi, J.M:

This is an appeal filed by the assessee Under Section 253 of

the Income Tax Act, 1961 (hereinafter referred to as the “Act” for

sake of brevity) before this Tribunal. The assessee is aggrieved by

the order bearing Number ITBA/NFAC/S/250/2024-

25/1069255512(1) dated 30.09.2024 passed by the Ld. CIT(A)

u/s 250 of the Act which is hereinafter referred to as the

“Impugned order”. The relevant Assessment Year is 2013-14

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and the corresponding previous year period is from 01.04.2012 to

31.03.2013.

2.1 That as and by way of an assessment order bearing

No.ITBA/AST/S/147/2021-22/1042340098(1) dated 31.03.2002

passed u/s 147 r.w.s. 144/144B of the Act, total income of

the assessee was computed and assessed at Rs.6,60,86,950/-.

The returned income was Rs.3,64,950/-. An addition of

Rs.6,57,22,000/- was made. The aforesaid assessment order is

hereinafter referred to as “impugned assessment order”.

2.2 That the assessee being aggrieved by the aforesaid

“impugned assessment order” prefers first appeal u/s 246A of

the Act before Ld. CIT(A) who by the “impugned order” has

dismissed the appeal of the assessee on grounds stated therein.

2.3 The core ground and reason for dismissal of first appeal

under the Act were as follows:-

“9. Further, on perusual of Form-36, it is seen that the appellant has neither attached/uploaded any submission nor submitted any evidences/documents/ explanation in support of facts and grounds of appeal, Various opportunities were provided to the appellant in the interest of natural justice. The appellant has not furnished any written submissions in support of grounds of appeal filed in appellate proceedings.

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2.3 That the assessee being aggrieved by the “impugned order”

has preferred the instant second appeal before this Tribunal and

has raised following grounds of appeal in Form No.36 against

the “impugned order” which are as under:-

“1. That, the learned CIT(A) as well as the Id. AO grossly erred, both on facts and in law, in passing the ex-parte orders without giving proper and effective opportunity of being heard to the appellant. 2. That, without prejudice to the above, the learned CIT(A) grossly erred in not adjudicating the appeal on merits of the case. 3a). That, without prejudice to the above, the learned CIT(A) grossly erred, in law, in confirming the action of the AO in assuming the jurisdiction under s.147 of the Income-Tax Act, 1961 and framing the assessment in consequence thereof. 3b). That, without prejudice to the above, the learned CIT(A) grossly erred, in law, in confirming the action of the AO in assuming the jurisdiction for framing the assessment under s.147 of the Act without having any objective reason to believe as regard to escapement of any income in the hands of the appellant. 4. That, without prejudice to the above, the learned CIT(A) grossly erred, both on facts and in law, in confirming the action of the AO for determining the income of the appellant at Rs.6,60,86,950/- for the relevant assessment year as against the returned income of Rs.3,64,950/- thereby making an addition of Rs.6,57,22,000/- by framing an Assessment Order under s.147 r.w.s. 144 of the Income- Tax Act, 1961, which is quite unjustified, unwarranted, arbitrary, bad-in-law and void-ab-initio. 5. That, without prejudice to the above, the learned CIT(A) grossly erred, both on facts and in law, in upholding the addition of Rs.6,57,22,000/- made by the AO on the allegation of unexplained money by invoking the provisions of s.69A of the Act without

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properly considering and appreciating the facts and circumstances of the case. 5. That, without prejudice to the above, the learned CIT(A) grossly erred, both on facts and in law, in confirming the action of the AO in invoking the provisions of section 115BBE of the Act without properly considering and appreciating the facts and circumstances of the case. 7. That, the appellant further craves leave to add, alter or amend the foregoing ground of appeal as and when considered necessary”. 3. Record of Hearing

3.1 The hearing in the matter took place before this Tribunal on

22.07.2025 when the Ld. AR for and on behalf of the assessee

appeared before us and interalia submitted that both the orders

of lower authorities are ex-parte in nature and thus deserves to

be set aside by this Tribunal. The Ld. AR pleaded for remand of

the matter back to the file of Ld. A.O. Per contra the Ld. CIT-DR

appearing for and on behalf of the revenue contended that the

Ld. A.O had given an opportunity to the assessee and so also the

opportunity was provided by Ld. CIT(A). The assessee has not

made use of the opportunities so provided by both the lower

authorities and therefore no fault can be found on the part of

both the lower authorities below and orders passed by them are

well within the four corners of law. It was prayed by him that

“impugned order” should not be set aside as prayed by the Ld.

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AR. In the rejoinder argument it was finally prayed by the Ld. AR

that ends of justice requires that income of the assessee must be

assessed and computed according to law with full and complete

opportunity to the assessee, so that he can aid the Assessing

Officer to correctly assess and compute the income exigible to

tax. Assessee is fully and willingly ready to cooperate with the

revenue if last and final opportunity is afforded to the assessee so

that ends of justice triumphs.

4.1 We now have to decide the legality, validity and the

proprietary of the “Impugned Order” basis records of the case

and rival contentions canvassed before us.

4.2 We have carefully perused the records of the case.

4.3 We basis records of the case and after hearing and upon

examining the contentions are of the considered opinion that the

“impugned assessment order” is u/s 144 of the Act. We also

notice that basis of paper book page 7 that the assessee in reply

dated 14.03.2022 to the Ld. A.O’s notice dated 12.11.2021 u/s

142(1) of the Act had complied with requisitions so made and

had also stated that same shall be with “glade” provided on

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hearing. On careful perusal of the “impugned assessment

order” we notice that there is nothing on record that an

opportunity of hearing was provided to the assessee which we

hold it to be a must as Ld. A.O is discharging a quasi judicial

function which entails serious civil consequences on the

assessee in the form of tax. Further law of the land

contemplates that no tax shall be levied and collected save

and except according to law. The due process of law requires

an opportunity of hearing to be given. No such opportunity was

given and nothing is discernable about any opportunity given

to the assessee from the “impugned assessment order”. Both

the Ld. AR & Ld. DR has not pointed out to this tribunal the

factual position with regard to the opportunity whether it was

provided or not to the assessee. Hence we hold that the

“impugned assessment order” is bad in law for lack of

opportunity of personal hearing to the assessee. Now coming

to the “impugned order” of Ld. CIT(A) we notice that in all five

opportunities were afforded to the assessee but the assessee has

not availed a single opportunity nor has filed any

submission/reply/evidence etc. hence the Ld. CIT(A) dismissed

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the 1st appeal. During the hearing it was vehemently pleaded

that the assessee desire a last opportunity before the Ld. A.O

where they would set up their defense and same would be in the

interest of ends of justice. We are therefore of the considered

opinion that the plea and the prayer so made by the Ld. AR

needs a kind consideration by this tribunal in order to secure

ends of justice. We also find that at the original stage of

assessment the assessee had partly complied the requisitions

as and by way of a reply but from the “impugned assessment

order” more was expected by the Ld. A.O in form of books of

accounts, audit report etc. Under these peculiar facts and

circumstances, we feel and hold that an opportunity as and by

way of a last opportunity be afforded to the assessee wherein he

can produce all such documents, information, material etc

which the Ld. A.O desires and which are relevant to the case in

hand from the point of view of assessee also.

4.4 In view of aforesaid we set aside the “impugned order” and

remand the case to the Ld. A.O as and by way of a last

opportunity to the assessee. We sincerely hope and trust that

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this one last opportunity the assessee will make use of it and file

before the Ld. A.O all such information, documents, paper and

material so that the Ld. A.O can adjudge and adjudicate the

issue of computation of income in accordance with law.

Assessee to cooperate with Ld. A.O and not to seek any

unnecessary adjournments, if any on flimsy ground.

5.1 In the premises we set aside the “impugned order” as and

by way of remand back to the file of Ld. A.O on denovo basis.

5.2 In the result, the appeal of the assessee is allowed for

statistical purpose.

Order pronounced in open court on 28.07.2025.

Sd/- Sd/-

(B.M. BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER

Indore िदनांक / Dated : 28/07/2025

Dev/Sr. PS

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Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File

By order COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore

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