MANGALAM SERVICE STATION ,ALLAHABAD vs. ACIT CENTRAL , ALLAHABAD
Facts
The assessee, Manglam Service Station, engaged in petrol/diesel trading, filed an appeal against the assessment order for AY 2017-18, where the AO determined income significantly higher than the returned income by making various additions under sections 68, 69, and 40A(3) of the Act. The CIT(A) dismissed the assessee's first appeal ex-parte, which the assessee attributed to a partner's mental distress following his mother's death, leading to non-compliance.
Held
The Tribunal set aside the CIT(A)'s ex-parte order and remitted all disputed issues concerning the additions made by the AO back to the file of the Assessing Officer. The AO is directed to pass a de novo order after providing the assessee with a fresh and reasonable opportunity to present their case and furnish necessary details.
Key Issues
Whether the ex-parte order by CIT(A) was justified; Whether additions for unexplained cash credit under section 68 and 69 were valid; Whether disallowance of interest expense and addition for non-deduction of TDS under section 40A(3) were correct.
Sections Cited
143(3), 68, 69, 40A(3)
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Income Tax Appellate Tribunal, ALLAHABAD BENCH, ALLAHABAD
Before: SHRI ANADEE NATH MISSHRA & SHRI SUBHASH MALGURIA
PER ANADEE NATH MISSHRA, A.M.
(A) This appeal vide I.T.A. No.165/Alld/2024 has been filed by the assessee for assessment year 2017-18 against impugned appellate order dated 30/09/2024 (DIN & Order No.ITBA/APL/S/250/2024- 25/1069277158(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].
(B) In this case the assessment order dated 30/12/2019 was passed by the Assessing Officer u/s 143(3) of the Act whereby the assessee’s total income was determined at Rs.6,89,28,948/- as against returned income of Rs.5,45,220/-. The assessee filed appeal in the office of the learned CIT(A). Vide impugned appellate order dated 30/09/2024, the assessee’s appeal
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was dismissed. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 30/09/2024 of the learned CIT(A). In the course of appellate proceedings, a paper book containing the following particulars was filed from the assessee’s side:
(B.1) At the time of hearing, learned Counsel for the assessee drew our attention to written submissions contained in the aforesaid paper book, which is reproduced below for the ease of reference:
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(C) At the time of hearing, learned Counsel for the assessee placed reliance on the aforesaid written submissions and paper book. In his oral submissions he pleaded that issues in dispute regarding various additions made by the Assessing Officer in the assessment order, and confirmed by learned CIT(A) in her impugned appellate order; be restored back to the file of the Assessing Officer with the direction to pass de novo order on the issues in accordance with law after providing reasonable opportunity to the assessee. Learned D.R. expressed no objection to this and left the matter to the discretion of the Bench.
(D) In view of the foregoing, the impugned appellate order of learned CIT(A) is set aside and the issues in dispute regarding various additions made by the Assessing Officer in the assessment order, and confirmed by learned CIT(A) in her impugned appellate order are restored back to the file of the Assessing Officer with the direction to pass de novo order in accordance with law after providing reasonable opportunity to the assessee.
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(E) In the result, the appeal of the assessee stands allowed for statistical purposes.
(Order pronounced in the open court on 30/09/2025)
Sd/. Sd/. (SUBHASH MALGURIA) (ANADEE NATH MISSHRA) Judicial Member Accountant Member
Dated:30/09/2025 *Singh
Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Allahabad
