ALANG STEEL RECYCLING PRIVATE LIMITED,BHAVNAGAR vs. THE DY.CIT, CIRCLE-1, BHAVNAGAR

ITA 1604/AHD/2025Status: DisposedITAT Ahmedabad16 January 2026AY 2018-19Bench: DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL (Judicial Member)8 pages
AI SummaryRemanded

What did the Tribunal hold?

The Income Tax Appellate Tribunal noted that the CIT(A) decided the appeal without effective assistance from the assessee, who failed to furnish detailed submissions and evidence. Considering the nature of the issues, including the non-disturbance of opening/closing stock and non-consideration of transport bills, the Tribunal found it appropriate to restore the entire matter to the CIT(A) for fresh adjudication. The CIT(A) is directed to provide adequate opportunity to the assessee to present all relevant submissions and documentary evidence.

What were the facts?

The assessee filed its return of income, but the Assessing Officer reopened the assessment under section 147 based on information regarding alleged bogus purchase transactions totaling ₹77,61,745/- from M/s Hamaalloys Exim and M/s Bankey Bihari Industries. The AO disallowed these purchases under section 37 due to lack of evidence and initiated penalty proceedings under section 270A. The CIT(A) upheld the AO's order, dismissing the assessee's appeal, primarily because the assessee failed to file submissions or supporting evidence during the appellate proceedings.

What were the issues?

Validity of reopening assessment under section 147; Disallowance of bogus purchases under section 37; Confirmation of interest under sections 234A/B/C/D and initiation of penalty proceedings under section 270A; Violation of natural justice due to ex-parte order by CIT(A).

Which sections of the Income-tax Act were involved?

Section 147,Section 37,Section 234A,Section 234B,Section 234C,Section 234D,Section 270A,Section 133(6),Section 144B,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

For Appellant: Shri Parimalsinh B. Parmar, AR
For Respondent: Shri Abhijit, Sr.DR
Pronounced: 16.01.2026

PER SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:

The present appeal has been filed by the assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the “the CIT(A)”] dated 12/02/2025 passed for Assessment Year (AY) 2018-19. 2. The assessee has taken the following Grounds of Appeal:-

“1. The Ld. CIT(A) has erred, both in law and on facts, in passing ex-parte order which is in gross violation of the principles of natural justice.

2.

The Ld. CIT(A) has erred, both in law and on facts, in confirming action of AO in assuming juri iction under section 147 of the Act. Alang Steel Recycling P

The order continues below.

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