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Facts
The assessee filed a return of income for AY 2018-19, which was selected for scrutiny. The Assessing Officer made significant additions, increasing the assessed income substantially. The assessee's appeal to the CIT(A) was dismissed.
Held
The Tribunal noted that the appeal was decided by the CIT(A) without the assessee filing submissions. In the interest of justice, the Tribunal restored the matter to the CIT(A) to grant one final opportunity to the assessee to present its case.
Key Issues
Violation of principles of natural justice by the lower authorities, and whether a final opportunity of hearing should be granted to the assessee.
Sections Cited
143(2)
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IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH 'A', NEW DELHI
BEFORE SH.SUDHIR KUMAR, JUDICIAL MEMBER AND SMT. RENU JAUHRI, ACCOUNTANT MEMBER
ITA No.1421/Del/2024 Assessment Year: 2018-19
Birfa International Pvt. Ltd. C1/107 Janakpuri New Delhi 110058 PAN No. AAGCB5477P | Vs. | Assistant Commissioner Of Income tax Circle-27 New Delhi (APPELLANT) | (RESPONDENT)
Appellant by | Sh. Rishi Sehgal, Adv Respondent by | Sh. Kailash Dan Ratnoo CIT,DR Date of hearing: | 29/1/2026 Date of Pronouncement: | 29/1/2026
ORDER
PER SUDHIR KUMAR, JM:
This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-29 New Delhi [hereinafter referred to as "Ld.CIT(A)"] vide order dated 31.01.2024 pertaining to A.Y. 2018-19.
- 2. The assessee raised the following grounds in appeal: - 1. That the impugned assessment order and impugned CIT(A) order is illegal bad in law and
- without jurisdiction and hence the orders are liable to be quashed. - 2. That the addition of Rs.56,42,16,885/- made by the AO and upheld by the CIT(A) is illegal, bad in law and addition is liable to be deleted. - 3. That the addition of Rs.4,26,20,111/- made by the AO and upheld by the CIT(A) is illegal, bad in law and addition is liable to be deleted. - 4. That the addition of Rs.5,23,440/- made by the AO and upheld by the CIT(A) is illegal, bad in law and addition is liable to be deleted. - 5. That the addition of Rs.3,64,860/- made by the AO and upheld by the CIT(A) is illegal, bad in law and addition is liable to be deleted. - 6. That the various observation made in the assessment order and CIT(A) order are illegal, bad in law and against the facts on record and hence the impugned orders are liable to be quashed. - 7. That the lower authorities have failed to appreciate the business model of the appellant hence the additions that are made are illegal and liable to be deleted. - 8. That the orders passed by the lower authorities are passed in gross violation of principles of natural
- justice and hence the impugned orders liable to be set aside. - 9. That the assessee was also prevented by reasonable and sufficient cause for not representing the matter before the CIT(A). - 10. That the lower authorities have failed to examine the surroundings facts and circumstances and the orders passed by the lower authorities are illegal bad in law and unjust. - 11. That the explanation submission and evidences filed by the assessee before the lower authorities have not been considered judiciously and hence the orders of lower authorities are liable to be set aside. - 12. That the appellant prays to add, amend, alter, the grounds of appeal. - 3. The brief facts of the case are that the assessee filed return of income on 31-03-2019, declaring total income of Rs.22,12,970/ for the A.Y. 2018-19. The case of assessee was selected for scrutiny through CASS. Accordingly notice u/s 143(2) of the Act dated 22-09-2019 was issued. The Assessing Officer completed the assessment after making the additions and assessed the total income of RS.66,99,38,270/- against the return income of Rs.22,12,970/-.
- 4. Aggrieved the order of the AO the assessee filed the appeal before the Ld. CIT(A). The Ld. CIT(A), vide his order dated 31-01-2024 dismissed the appeal against which the assessee is in appeal before the tribunal. - 5. Ld. AR of the assessee submitted the impugned order was passed in gross violation of principles of natural justice. He prayed that the opportunity of being heard to be given to the assessee. The Ld. DR has relied the orders of the lower authorities. Ld. DR submitted that did not filed the submissions although the sufficient opportunity were provided by the Ld.CIT(A). - 6. We have heard the parties and perused the material available on record. Since in the instant case the assessee did not file the submissions before the Ld. CIT(A) and the appeal was decided in the absence of the submissions of the assessee. The assessee wants to file the submissions therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(A) with a direction to grant one final opportunity to the assessee to substantiate its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. CIT(A) and co-operate in the proceedings. The
grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 29.1.2026.
Sd/- Sd/- (RENU JAHURI) (SUDHIR KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER
SR BHATNAGGR
Date:- 05.02.2026
Copy forwarded to:
- 1.Appellant - 2.Respondent - 3.CIT - 4.CIT(Appeals) ` - 5.DR: ITAT
ASSISTANT REGISTRAR ITAT NEW DELHI