THE NIZAR TAL YUVA UT K SAH M LTD.,TAPI vs. ITO, WARD 2, BARDOLI
Facts
The assessee failed to furnish a return of income for AY 2017-18 despite notices and subsequent ex-parte assessment. The addition of Rs. 67,42,679/- u/s 69A of the Act was confirmed by the AO and CIT(A). The assessee's appeal to the tribunal was filed after the CIT(A) dismissed their earlier appeal due to non-compliance.
Held
The Tribunal noted the assessee's non-compliance and ex-parte orders at both assessment and CIT(A) levels. Despite this, considering the interest of justice and the need for a fair hearing, an opportunity was granted to the assessee.
Key Issues
Whether the ex-parte addition and confirmation of income were justified given the assessee's non-compliance, and if an opportunity for fresh adjudication should be granted.
Sections Cited
69A, 144, 250, 142(1), 139
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SURAT BENCH, SURAT
Before: SHRI DINESH MOHAN SINHA & SHRI BIJAYANANDA PRUSETH
IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER & SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER
आयकरअपीलसं./ITA No. 1358/SRT/2024 (�नधा�रणवष� / Assessment Year: (2017-18) The Nizar Tal Yuva UT K Sah M Ltd. Vs. Income Tax Officer, Ward 2, At. Waka, Opp. Jalaram Mandir, Station Road, Waka Nizar Bardoli, Dist – Surat 394 601 Tapi – 394 370 �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AACAT1946K (Appellant) (Respondent) Appellant by : Shri Suresh K. Kabra, CA Respondent by : Shri Ajay Uke, Ld. Sr. DR Date of Hearing : 02/09/2025 Date of Pronouncement : 28/11/2025 आदेश / O R D E R PER, DINESH MOHAN SINHA, JM:
Captioned appeal filed by the assessee, pertaining to Assessment Year 2017-18, is directed against the order dated 06/11/2024 passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”),Commissioner of Income-tax (Appeal), which in turn arises out of an assessment order dated 13/10/2019 passed by the Assessing Officer, u/s. 144 of the Act. 2. Grounds of appeal raised by the assessee are as follows: (1) The Ld. CIT(A) – NFAC has erred and was not just and proper on the facts of the case and in law in confirming the addition of Rs. 67,42,679/- u/s 69A of the Act.
ITA No. 1358/Srt/2024 The Nizar Tal Yuva UT K Sahm Ltd. Tapi 3. Brief facts of the case that the Notice u/s 142(1) of the Income tax Act, 1961 (hereinafter referred as Act) issued on 19.12.2017 calling The Nizar Tal Yuva Ut K Sah M Ltd (hereinafter referred as Assessee) to prepare a true and correct return of income in respect of which he is assessable under the Act during the previous year relevant to assessment year 2017-18. The notice was served upon the Assessee through speed post & Email, As per provisions of Section 142(1) of the Act, the Assessee was required to furnish the said return of income as required to be furnished as per the conditions and manner prescribed in Rule 12 of the Income Tax Rules, 1962, on or before 18.01.2018. But the Assessee has failed to furnish return of income for A.Y. 2017-18 neither u/s 139 of the Act (on or before 31.03.2018) nor in response to notice issued u/s 142(1) of the Act. That the assessment was calculated at assessed income of Rs. 67,42,679/- with an addition of Rs. 67,42,679/- u/s 69A of the Act. 4. That the assessee filed an appeal against the order of the AO before the Ld.CIT(A). that the Ld.CIT(A) has dismissed the appeal. Since, no compliance was made by the assessee.
That the assessee filed an appeal against the impugned order of the Ld.CIT(A) dated: 06.11.2024 before this Tribunal. (i) During the course of hearing, the Ld. AR of the assessee prayed for one more opportunity of being heard. (ii) On the contrary, the Ld.DR for the revenue have relied on the order of the Ld.CIT(A) further DR has no objection to the prayer.
ITA No. 1358/Srt/2024 The Nizar Tal Yuva UT K Sahm Ltd. Tapi 6. We have heard both the parties and perused the documents available on record, and also perused the order of Ld. CIT(A) We note that four notices have been issued by the Ld. CIT(A) for hearing the case but the assessee did not comply with the notices. That the Ld.CIT(A) passed an ex-parte order. We note that the assessment order is also ex-party u/s. 144 of the Income Tax Act. We note that the assessee has not gave due care and attention to the case and negligent in pursuing the case before the assessment, and the assessee has also a non-cooperative attitude in pursuing the case. We direct the assessee to deposit a cost of Rs. 5,000/-, and the same is to be deposited with Prime Minster Relief fund (Government of India), the receipt is to be submitted with the Registrar of this Tribunal. In the interest of justice, and after considering the facts and circumstances of the case, we are giving an opportunity to the assessee to present his case before the IT Authority. We set aside the order of the Ld.CIT(A) and remand the matter back to the file of AO for fresh adjudication on merit after giving due opportunity to the assessee of being heard.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 28-11-2025. Sd/- Sd/- (BIJAYANANDA PRUSETH) (DINESH MOHAN SINHA) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat �दनांक/ Date: 28/11/2025 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // True Copy // Assistant Registrar/Sr. PS/PS ITAT, Surat
