NIVIK INDUSTRIES PVT. LTD.,VADODARA vs. INCOME TAX OFFICER, WARD 2(1)(1), VADODARA

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ITA 141/AHD/2026Status: DisposedITAT Ahmedabad19 February 2026AY 2022-23Bench: DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE (Judicial Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal remanded the case back to the Assessing Officer for a de novo assessment, allowing the assessee another opportunity to present its case after paying a cost of Rs. 10,000/- to the Prime Minister's Relief Fund.

What were the facts?

The assessee's appeal against the CIT(A)'s ex-parte dismissal was due to upheld additions by the AO concerning a difference in sale consideration and unexplained creditors under section 68. The assessee had failed to furnish required details to both the AO and CIT(A) despite multiple opportunities.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex-parte without providing a reasonable opportunity of being heard; and whether the additions made by the Assessing Officer for difference in sale consideration and unexplained creditors under Section 68 of the Act were justified.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-Ms SUCHITRA KAMBLE

For Appellant: Shri Hemant Suthar, AR
For Respondent: Shri R P Rastogi, CIT. DR
Hearing: 18.02.2026Pronounced: 19.02.2026

(Assessment Year: 2022-23) Nivik Industries Pvt. Ltd., The Income Tax Officer, Vs. 9/10 Yashodhan Duplex, Ward 2(1)(1), Opp Raneshwar Temple, Vadodara. Vasna Road, Vadodara-390015. [PAN :AAPCS9919 N] (Appellant) .. (Respondent) Appellant by : Shri Hemant Suthar, AR Respondent by: Shri R P Rastogi, CIT. DR Date of Hearing 18.02.2026 Date of Pronouncement 19.02.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

This appeal is filed by the Assessee against the appellate order dated 05.12.2025 passed by the Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2022-23.

2.

The assessee has raised the following grounds of appeal:

1.

The Ld. CIT (Appeals), National Faceless Appeal Centre (NFAC), Delhi has grossly erred in law and in facts in dismissing the appeal ex-parte without affording reasonable opportunity of being heard to the appellant. The appeal of the appellant may kindly be restored to the file of the Ld. CIT (Appeals) and may please be directed to afford reasonable opportunity of being heard.

Asst. Year : 2022-23 - 2– 2. The Ld. CIT(A), NFAC has erred in law and in facts in holding the action of the Ld. A.O in making an addition of Rs 7.52.90 426/- being difference between the actual sale consideration of Rs. 16,22.90,426/- and the sale consideration declared in the Return of Income of Rs 8,70,00,000/- The addition of Rs. 7,52,90,426/- being bad in law and in facts is prayed to be deleted.

3.

The Ld. CIT(A), NFAC has erred in law and in facts in holding the action of the Ld. A.O. in making an addition of Rs 27,11,383/- treating the same as unexplained creditors u/s 68 of the Act, on the ground that the appellant has failed to prove the creditworthiness and genuineness of the creditors. The addition of Rs 27,11,383/-being bad in law and in facts is prayed to be deleted 4. The Ld. CIT(A), NFAC has erred in law and in facts in holding the action of the Ld. A.O. in making an addition of Rs 6,82.58,629/- treating the same as unexplained creditors u/s. 68 of the Act, on the ground that the appellant has failed to prove the creditworthiness and genuineness of the creditors The addition of Rs.6,82,58,629/- being bad in law and in facts is prayed to be deleted 5. Your appellant craves liberty to add, alter, amend substitute or withdraw any of the grounds of appeal hereinabove contained.

3. On perusal of the records, it is observed that the assessee was afforded several opportunities of hearing on 21.11.2024, 11.08.2026, 31.10.2025 and 13.11.2025 to furnish details, clarifications and explanations to substantiate the source of unexplained creditors under section 68 of the Act. However, despite being granted multiple opportunities, the assessee remained non-compliant, sought adjournments, and failed to furnish the requisite details or explanations before the Ld. CIT(A). Consequently, the Ld. CIT(A), based on the material available on record, upheld the action of the Assessing Officer and dismissed the appeal of the assessee ex parte. We further observe that the assessee also failed to submit any details or supporting evidence to establish the source of unexplained creditors even before the Assessing Asst. Year : 2022-23 - 3– Officer. During the course of hearing before us, the Ld. Counsel for the assessee prayed that, given an opportunity, due compliance would be made and all necessary details, clarifications and explanations would be furnished before the revenue authorities. The Ld. Counsel for the assessee has voluntarily agreed to pay a cost of Rs. 10,000/- into the “Prime Minister’s Relief Fund”. The receipt thereof shall be submitted before the Jurisdictional Assessing Officer, who shall take the same on record before passing the order giving effect to this order of the Tribunal. Considering the totality of the facts and in the interest of justice, we deem it appropriate to remand the matter to the file of the Assessing Officer for conducting the assessment de novo. The assessee is directed to submit all relevant bank statements, documents and explanations before the Assessing Officer and to strictly comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments.

4.

In the result, the appeal of the assessee is allowed for statistical purposes.

The order is pronounced in the open Court on 19.02.2026.

Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy)rue Copy) (True Copy) Ahmedabad; Dated 19.02.2026 MV Asst. Year : 2022-23 - 4– आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy

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