RUKMINI FABRICS,BELGAUM vs. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI
Facts
The assessee, Rukmini Fabrics, faced additions by the AO following a survey u/s 133A, where additional income from stock difference and unexplained cash was admitted. The AO passed an order u/s 147, making additions which were challenged before the CIT(A). The CIT(A) dismissed the appeal ex-parte due to non-compliance, confirming the AO's action, leading the assessee to appeal to the Tribunal.
Held
The Tribunal acknowledged the CIT(A)'s ex-parte dismissal but noted the assessee's challenge to the additions. Applying principles of natural justice, the Tribunal set aside the CIT(A)'s order. It remanded all disputed issues back to the CIT(A) for fresh adjudication on merits, instructing to provide the assessee with an adequate opportunity of hearing.
Key Issues
Validity of the ex-parte dismissal by the CIT(A) and whether the assessee was afforded sufficient opportunity of hearing regarding the additions made by the Assessing Officer.
Sections Cited
147, 144, 250, 133A, 148, 143(2), 142(1), 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH PANAJI
Before: SHRI PAVAN KUMAR GADALE
IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T A. No.247/PAN/2025 (A.Y. 2018-19) Rukmini Fabrics, Vs National Faceless 311, Chavadi Galli, Assessment Centre, . M Vadgaon, New Delhi-110003 Belgaum-590005, Karnataka. PAN.NO. AAUFR2351R (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent)
Assessee by None(Letter dt13-09-2025) Revenue by Shri Ish Gupta.Sr.DR
सुनवाई की तारीख/Date of Hearing 17.09.2025 घोषणा की तारीख/Date of Pronouncement 18.09.2025 ORDER PER PAVAN KUMAR GADALE ,JM: The assesse has filed the appeal against the order of the NFAC/CIT(A) Delhi passed u/sec147 r.w.s144 and u/sec 250 of the Act. The assesee has raised the grounds of appeal challenging the ex parte order of the CIT(A) sustaining the additions made by the Assessing officer. 2. At the time of hearing, it was brought to the knowledge of the bench, that there is a delay of 113 days in filing the appeal before the Hon’ble Tribunal and the assesse has filed an application and the affidavit for condonation of
2 ITA. No.247/PAN/2025 Rukmini Fabrics. delay. Whereas, the facts mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, condone the delay and admit the appeal. 3. The brief facts of the case are that, the assessee is a partnership firm and is engaged in the business of manufacturing of sarees and the return of income for A.Y.2018-19 was filed disclosing a business income of Rs.6,27,290/-. There was survey operations u/sec133A of the Act on 30.10.2017 in the business premises of the assessee. Further the oath statement of the partner was recorded and the partner has admitted additional income of Rs.11,02,047/- i.e Rs.4,15,807/- towards the difference in the value of stock and similarly Rs.6,86,240/- as unexplained cash in hand in the firm account. The Assessing officer (A.O) found that these amounts offered in the survey operations were not included in the return of income filed for A.Y.2018-19. The Assessing officer has reason to believe that the income has escaped the assessment and issued notice u/sec148 of the Act. Subsequently the notice u/sec 143(2) and 142(1) of the Act are issued and there was no compliance.
Finally a show cause notice dated 2.11.2023 was issued by the A.O and the assessee has filed the explanations on 6.12.2023. The assesses explanations are that in the survey operations the assesee has admitted the
3 ITA. No.247/PAN/2025 Rukmini Fabrics. admitted additional income of Rs.11,02,047/- i.e Rs.4,15,807/- towards the difference in the value of stock and similarly Rs.6,86,240/- as unexplained cash in hand in the firm account for F.Y.2016-17 relating to A.Y.2017- 18 , but the A.O has issued the notices for A.Y.2018-19 . The assessing officer dealt on the statement recorded in the survey operations u/sec133A of the Act and the reply filed in lieu of notice u/sec148 of the Act and the submissions on applicability of the correct assessment year and the questions raised in the statements of the partner recorded in the survey operations. Finally the A.O has rejected the objections of the assessee on validity of issue of notice u/sec148 of the Act and made addition of (i) unaccounted stock of Rs.4,15,807/- and (ii) unaccounted cash of Rs.6,86,240/- and assessed the total income of Rs.17,29,337/- and passed the order u/sec 147 r.w.s144 r.w.s144B of the Act dated 07.03.2024.
Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assesse to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assesse has filed an appeal before the Hon'ble Tribunal.
4 ITA. No.247/PAN/2025 Rukmini Fabrics.
Heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices ofhearingi.e.23.04.2024,11.06.2024,27.06.2024,11.07.202 4,17.10.2024,16.12.2024,31.12.2024 &4.02.2025 referred at Page3 Para 4 of the CIT(A) order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the additions made by the A.O and there could be various reasons for non appearance which cannot be overruled.
Therefore, considering the facts, circumstances and the principles of natural justice,shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assessee should be provided
5 ITA. No.247/PAN/2025 Rukmini Fabrics. adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And, the grounds of appeal of the assessee are allowed for statistical purposes. 8. In the result, the appeal filed by assesse is allowed for statistical purposes. Order pronounced in the open court on 18.09.2025.
-S/d- (PAVAN KUMAR GADALE) JUDICIAL MEMBER Panaji Dated: 18/09/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT 6. Guard file. //True Copy//
BY ORDER, (Asstt. Registrar)ITAT, Panaji
6 ITA. No.247/PAN/2025 Rukmini Fabrics. Initial Date 1. Draft dictated on PS 2. Draft placed before author PS
Draft proposed & placed before PS the second member Draft discussed/approved by 4. PS Second Member. 5. Approved Draft comes to the PS Sr.PS/PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR Date on which file goes to the 9. Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed
