SHRI BALAJI SECURITY SERVICES,AHMEDABAD vs. THE DY.CIT, CIRCLE-2(1)(1), AHMEDABAD

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ITA 2489/AHD/2025Status: DisposedITAT Ahmedabad27 January 2026AY 2023-24Bench: Shri Sanjay Garg, Judicial Member And Annapurna Gupta (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that to serve the interests of justice, the assessee should be given a fresh opportunity to present its case before the CIT(A). The impugned order of the CIT(A) was set aside, and the matter was restored to the CIT(A) for a de novo decision on merits, conditional upon the assessee depositing Rs. 5,000/- to the Prime Minister's National Relief Fund.

What were the facts?

The assessee, Shri Balaji Security Services, appealed against an ex-parte order by the CIT(A) concerning the disallowance of bad debt. The assessee's counsel argued that due to unavoidable circumstances, they could not present their case before the CIT(A) and an adjournment request was denied, leading to a decision on merits without their submissions.

What were the issues?

Disallowance of bad debt; Whether an assessee should be granted a fresh opportunity to present its case before CIT(A) when the previous order was ex-parte.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: Shri Sanjay Garg & Annapurna Gupta

For Appellant: Shri A.K. Khandelwal, AR
Hearing: 20/01/2026Pronounced: 27/01/2026

Year : 2023-24 Shri Balaji Security Services The Dy.CIT बनाम/ 1, Krishnavan Society Circle-2(1)(1) v/s. 34d Floor, Ahmedabad Opp. Janta Ice Cream Ankur Road Ahmedabad – 380 013 "थायी लेखा सं./PAN: ACEFS 3752 K (अपीलाथ(/ Appellant) ()* यथ(/ Respondent) Assessee by : Shri A.K. Khandelwal, AR Revenue by : Shri Rohit Aasudani, Sr.DR सुनवाई की तारीख/Date of Hearing : 20/01/2026 घोषणा की तारीख /Date of Pronouncement: 27/01/2026 आदेश/O R D E R Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 17/10/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2023-2024. Shri Balaji Security Services vs. DCIT Asst. Year : 2023-24

2.

The issue involved in this appeal is relating to disallowance of bad debt claimed by the assessee.

3.

At the outset, the Ld. Counsel for the assessee submitted that the impugned order is an ex-parte order. He has further submitted that the assessee has a fair case on merits. He further submitted that due to certain unavoidable circumstances, the assessee could not present its case before the Ld. CIT(A). He has submitted that in the interests of justice, the assessee may be given an opportunity to make its submissions before the Ld. CIT(A), so that the appeal of the assessee may be decided on merits by the Ld. CIT(A). The Ld. Counsel for the assessee has also submitted that on the last date of hearing, an adjournment was sought by the assessee for furnishing certain documents, but the same was not allowed by the Ld. CIT(A) and the Ld. CIT(A) proceeded to decide the appeal on merits.

4.

After hearing the Ld. Representatives of the parties and going through the record, we are of the view that the interests of justice will be well-served, if the assessee is given an opportunity to present its case before the Ld.CIT(A) subject to payment of reasonable costs. We, accordingly, direct the assessee to deposit a sum of Rs.5,000/- to the Prime Minister’s National Relief Fund and furnish the receipt of such deposit before the Ld. CIT(A). Subject to fulfilment of the above condition, the impugned order of the Ld. CIT(A) is set aside and the matter is restored to the file of the Ld.CIT(A) for a decision afresh on merits. Needless to say, that the Ld.CIT(A) will give proper and adequate opportunity to the assessee to present its case. The assessee will also take care of the notices of hearing issued by the Ld. CIT(A) and will promptly file the details and explanations. Shri Balaji Security Services vs. DCIT Asst. Year : 2023-24

5.

With the above observations, the appeal of the assessee is treated as allowed for statistical purposes.

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